Usefulness Lost: Aggregating Information with Differing Levels of Verifiability
29 Pages Posted: 7 May 2005
Abstract
In this paper, we study information asymmetries about verifiability between a principal and an agent. Our main result is that an information asymmetry about verifiability not only reduces the usefulness of a given performance measure for stewardship purposes, it can completely destroy that performance measure's usefulness.
Keywords: Stewardship, Verifiability, Information Asymmetry
JEL Classification: C70, D82, M41
Suggested Citation: Suggested Citation
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