Patrick W. Schmitz
Economics Letters, Vol. 117 (3), 2012, 642–645.
Abstract. An agent can make an observable but non-contractible investment. A principal then offers to collaborate with the agent to provide a public good. Private information of the agent about his valuation may either decrease or increase his investment incentives, depending on whether he learns his type before or after the investment stage.
The working paper version is available for download (CEPR Discussion Paper 9065).
The paper is available for download.