Cremer, J., Khalil, F. and Rochet, J.-C.
Strategic information gathering before a contract is offered. Southampton, UK, University of Southampton
(Discussion Papers in Economics and Econometrics 9708).
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In a Baron-Myerson setup, we study a situation where an agent is initially uninformed, but can, at a cost, acquire information about the state of nature before the principal offers him a contract. For intermediate values of the cost of acquiring information, the agent's equilibrium strategy will be a mixed strategy: he will acquire information with a probability strictly between 0 and 2. we identify the contract that the principal will offer to such a "maybe informed" agent.
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