useless participation Return to problem 6 in Chapter 19 and the probability structure in part [d]. Verify
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useless participation Return to problem 6 in Chapter 19 and the probability structure in part [d].
Verify that if only the manager observes the monitor's report, then the best Ralph can do is commit in the pay-for-performance aITangement to ignore whatever the agent elaims the monitor said. Give an intuitive explanation.
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