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Austensmith Feddersen (2008) - Public Disclosure Private Revelation Or Silence (view source)
Revision as of 22:42, 24 May 2010
, 22:42, 24 May 2010→Whistleblowing Under a Type 0 Manager
\begin{cases}
\overline{c} & \mbox{ if } a_e = p \mobx{ and } v \in \left [\hat{v},\dot{v} \right ) \\
c(v) \in [\tildatilde{c}(v),\overline{c}] & \mbox{ if } a_e = p \mobx{ and } v < \hat{v} \\
\overline{c} & \mbox{ if } a_e = w \mobx{ and } v < \dot{v} \\
0 & mbox{ otherwise}
\,</math>
where <math>\tildatilde{c}(v) = \frac{(q_p - q_{\phi})v}{(1 - q_{\phi}v)}\overline{c}\,</math>
This is somewhat complicated and best explained as follows:
*For any violation <math>v \in \left[\hat{v},\dot{v} \right)\,</math> the employee reports privately if his type is above a cutoff, and otherwise stays silent
*For any violation <math>v \in \left(0,\hat{v}\right)\,</math> and <math>c \ge \tilda{c}(v)\,</math> as a punishment for reporting privately, the employee stays silent if his type is below a cutoff, and otherwise blows the whistle.
==Seperating Equilibria==
