The article explores how a supervisor can affect a company's profits when colluding with an employee. If the supervisor knows as much as the employee, it doesn't help the company make more money. But if they have different information, it can lead to problems and lower overall welfare. By controlling the employee's chances of colluding with the supervisor, the company can increase its profits. However, giving the supervisor the power to make deals with the employee doesn't always work in the company's favor. In fact, it can lead to a decrease in social welfare.