Study reveals how collusion can lead to inefficiencies in contracts
The paper discusses how a supervisor and an employee can work together to deceive their boss in a work setting. It suggests that there is a best way to prevent this deception, but it may lead to inefficiencies and the need for renegotiation. If renegotiation is allowed, sometimes the best way to prevent deception actually encourages it. This shows that how the boss deals with inefficiencies can determine if deception happens or not.