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Zhiyuan Jia

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Preprint Aug 2026

Random Cap: Optimal Informationally Robust Delegation

Are simple delegation rules optimal under ambiguity? We study delegation when the principal knows the mean, but not the distribution, of the agent's private information. In a parsimonious quadratic constant-bias environment, the robustly optimal randomized mechanism is a random cap: the principal draws and reveals an u...

Zhiyuan Jia · 2 citations

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