Multitask assignments with adverse selection

  title={Multitask assignments with adverse selection},
  author={Minbo Xu and Nina Yin and Sanli Li},
Abstract In a simple multitask assignments model with adverse selection, we derive the optimal contracts when the principal assigns two tasks to different agents or to a single agent. Assigning tasks to different agents introduces a cross-checking device, while assigning tasks to a single agent relaxes participation constraints. The principal prefers to combine tasks to a single agent except for the case in which the correlation of types is positive and strong enough.