situations of hidden-information agency and moral hazard, respectively).
2
The next
subsection briefly discusses some other areas of the literature that are being ignored,
along with citations for readers interested in those areas.
Beyond that next subsection, the rest of the chapter is divided as follows: Section 6.2
considers situations in which the contract proposer is the ignorant party. Her problem
is to design a mechanism that induces her counter party, who is exogenously endowed
with his information, to reveal that information in such a way that maximizes the con-
tract proposer’s expected ...
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