https://macropaperwarehouse.com/authors/jonathan-libgober/Jonathan LibgoberHugo -- gohugo.ioen-ushttps://macropaperwarehouse.com/papers/the-dynamics-of-verification-when-searching-for-quality/https://macropaperwarehouse.com/papers/the-dynamics-of-verification-when-searching-for-quality/<p>This paper develops a dynamic principal-agent model in which a principal seeks to select exactly one project from a stream of possibilities emerging over time, while a biased agent (who wants any project selected, regardless of quality) reports project quality each period. The principal cannot observe quality directly but can pay a cost c to verify it. Monetary transfers are unavailable. The central question is how verification and selection rules should optimally evolve over time as new options arrive.</p>