DP7331 | The Costs and Benefits of Additional Information in Agency Models with Endogenous Information Structures

Publication Date

23/06/2009

JEL Code(s)

Keyword(s)

Programme Area(s)

Abstract

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.