Common Agency with Horizontally Differentiated Principals
AbstractI analyze a common agency relationship where the agent has private information about the difference in his value for two principals. When the principals independently offer incentive contracts, the agent specializes less than is socially efficient, but more than when they cooperate and choose the contract that maximizes their joint payoff. Under both arrangements the agent faces countervailing incentives. The pooling region of types receiving a flat fee is larger and the incentive pay of the remaining types is lower powered under cooperation than under independent contracting. The principals prefer independent contracting with a common agent to exclusive dealing.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by The RAND Corporation in its journal RAND Journal of Economics.
Volume (Year): 28 (1997)
Issue (Month): 2 (Summer)
Contact details of provider:
Web page: http://www.rje.org
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- d’ASPREMONT, Claude & DOS SANTOS FERREIRA, Rodolphe, .
"Oligopolistic competition as a common agency game,"
CORE Discussion Papers RP
-2238, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Claude, D’ASPREMONT & Rodolphe, DOS SANTOS FERREIRA, 2005. "Oligopolistic Competition as a Common Agency Game," Discussion Papers (ECON - DÃ©partement des Sciences Economiques) 2005018, Université catholique de Louvain, Département des Sciences Economiques.
- D’ASPREMONT, Claude & DOS SANTOS FERREIRA, Rodolphe, 2005. "Oligopolistic competition as a common agency game," CORE Discussion Papers 2005018, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Thomas A. Gresik, 2001. "The Taxing Task of Taxing Transnationals," Journal of Economic Literature, American Economic Association, vol. 39(3), pages 800-838, September.
- Olsen, Trond E. & Osmundsen, Petter, 2003. "Spillovers and international competition for investments," Journal of International Economics, Elsevier, vol. 59(1), pages 211-238, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.