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Delegated expertise: Implementability with peer-monitoring

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  • Azrieli, Yaron

Abstract

A decision maker would like to delegate the acquisition of information to an expert, but is unable to observe the expert's actions, nor is she able to postpone the payment to the expert until the truth is revealed. If the expert can manipulate their report of the realized signal then incentivizing information acquisition is typically impossible. However, by hiring multiple experts and making the payments contingent on the entire vector of signals the decision maker can obtain useful information. We characterize the implementable vectors of information structures. In particular, we show that if one vector of structures is implementable then any vector of more informative structures is implementable as well.

Suggested Citation

  • Azrieli, Yaron, 2022. "Delegated expertise: Implementability with peer-monitoring," Games and Economic Behavior, Elsevier, vol. 132(C), pages 240-254.
    • Handle: RePEc:eee:gamebe:v:132:y:2022:i:c:p:240-254
    DOI: 10.1016/j.geb.2021.12.008
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    References listed on IDEAS

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    More about this item

    Keywords

    Implementation; Moral hazard; Information acquisition; Monitoring;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law

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