Response to the following problem:
Consider the incentive problem for a single-agent organizational system under incomplete awareness of the principal regarding the agent's type r ≥ 0.
The goal functions of the principal and the agent are φ(y) = y - σ(y) and f ( y,r ) = s( y ) - y2 / (2r ), respectively. For an arbitrary planning mechanism, demonstrate the feasibility of constructing an incen- tive-compatible mechanism with the same or greater efficiency [83].
What would be the efficiency of the organizational system if the principal knows true types of all agents?