Game Theory: If the principal cannot observe the effort level of the agent, what will be ? And what will be the effort level of the agent in that case? What will be the profit of the principal?
Game Theory There are two effort level for the agent and they are . For the agent the cost for high effort is 500 and the cost for low effort is 0. The reservation utility for the agent is 500. When the agent is working for the principal, there can be three levels of profit … Read more