Risk-neutral agent. Show that, when the agent is risk neutral, P can achieve the same solution when A’s action is hidden as when it is observable. [Hint: what is the first-best full information...

Risk-neutral agent. Show that, when the agent is risk neutral, P can achieve the same solution when A’s action is hidden as when it is observable. [Hint: what is the first-best full information contract and what would happen if P offered it to A when she cannot observe a?]