Information asymmetry in e-commerce market causes adverse selection phenomenon that hinders the healthy development of e-marketing. Based on the adverse selection model put forward by American economist George Akerlof , who is one of Nobel Economics Prize laureates in 2001, this paper set up an e-marketing model under the adverse selection environment in e-ecommerce market. This paper takes act...

We study a principal–agent model with moral hazard and adverse selection. Risk‐neutral agents limited liability have arbitrary private information about the distribution of outputs cost effort. show that under multiplicative separability condition, optimal mechanism offers single contract. This condition holds, for example, when output is binary. If principal's payoff must also satisfy free dis...