Principal-agent theory assumes that the principal’s access to information is limited, and that the principal cannot perfectly and without costs monitor the agent’s actions (Jacobides and Croson 2001). Different types of information asymmetries exist: While Arrows (1985, 38) distinguishes between hidden action and hidden information, other authors (Alchian & Woodward 1988; Saam 2002) subclassify hidden information into hidden characteristics, hidden intention, and hidden knowledge.