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Question 6 (2 points) Consider a situation where a principal hires an agent who may be “good” or
“bad”. Not being able to identify the type of the agent. she must design two contracts (WG, eG)
and (WB, e B) stipulating an effort level (e) and an associated wage (w). The utility of the agent is… Show more
“bad”. Not being able to identify the type of the agent. she must design two contracts (WG, eG)
and (WB, e B) stipulating an effort level (e) and an associated wage (w). The utility of the agent is… Show more
