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Games played in a contracting environment

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  • Bhaskar, V.

Abstract

We analyze normal form games where a player has to pay a price to a supplier in order to play a specific action. Our focus is on supplier competition, arising from the fact that distinct suppliers supply different players, and possibly different actions of the same player. With private contracts, where a player only observes the prices quoted by his own suppliers, the set of equilibrium distributions over player actions coincides with the set of equilibrium distributions when all actions are supplied competitively, at cost. With public contracts, the two distributions differ dramatically even in simple games.

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Bibliographic Info

Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 67 (2009)
Issue (Month): 2 (November)
Pages: 389-398

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Handle: RePEc:eee:gamebe:v:67:y:2009:i:2:p:389-398

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Web page: http://www.elsevier.com/locate/inca/622836

Related research

Keywords: Multi-party contracting Marginal contributions Perfect substitutes Perfect complements;

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References

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Cited by:
  1. Emanuele Gerratana & Levent Koçkesen, 2013. "Commitment without Reputation: Renegotiation-Proof Contracts under Asymmetric Information," Koç University-TUSIAD Economic Research Forum Working Papers 1323, Koc University-TUSIAD Economic Research Forum.

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