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Mediated Partnerships

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  • David Rahman
  • Ichiro Obara

Abstract

This paper studies partnerships that employ a mediator to improve their contractual ability. Intuitively, profitable deviations must be attributable, that is, there must be some group behavior such that an individual can be statistically identified as innocent, to provide incentives in partnerships. Mediated partnerships add value by effectively using different behavior to attribute different deviations. As a result, mediated partnerships are necessary to provide the right incentives in a wide range of economic environments. Copyright 2010 The Econometric Society.

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Bibliographic Info

Article provided by Econometric Society in its journal Econometrica.

Volume (Year): 78 (2010)
Issue (Month): 1 (01)
Pages: 285-308

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Handle: RePEc:ecm:emetrp:v:78:y:2010:i:1:p:285-308

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Cited by:
  1. David A. Miller & Kareen Rozen, 2011. "Optimally Empty Promises and Endogenous Supervision," Levine's Working Paper Archive 786969000000000270, David K. Levine.
  2. De Marco, Giuseppe & Immordino, Giovanni, 2013. "Partnership, reciprocity and team design," Research in Economics, Elsevier, vol. 67(1), pages 39-58.

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