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On the Value of Improved Informativeness

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Academic year: 2021

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Figure

Figure 1: Sensitivity of the agency rent to σ for a range of values of Z, for b = ¯ e = 1 and σ = 1
Figure 2: Sensitivity of the agency rent to σ for a range of values of Z, for b = ¯ e = 1 and σ = 3
Figure 3: Change in the agency rent for a 1% change in σ, expressed as a fraction of the expected cost of compensation in equilibrium, for b = ¯e = 1 and σ = 1

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