The Costs and Benefits of Additional Information in Agency Models with Endogenous Information Structures
13 Pages Posted: 15 Jun 2009
Date Written: June 13, 2009
We study the effect of additional private information in an agency model with an endogenous information structure. If more private information becomes available to the agent, this may hurt the agent, benefit the principal, and affect the total surplus ambiguously.
Keywords: Hidden information, adverse selection, information gathering
JEL Classification: D82, D86, C72
Suggested Citation: Suggested Citation