original papers : Implementation of optimal contracts under adverse selection
AbstractThis paper studies a 2-agent, 2-type principal-multiagent model of adverse selection under the assumption that the agents each have complete information. We construct a mechanism implementing the first-best contracts in Nash equilibrium that: satisfies a condition related to individual rationality, is renegotiation-proof, has a small-sized message space, achieves unique implementation and satisfies undomination of Nash equilibrium strategies. Moreover, we prove that other requirements which relate to individual rationality (different from the one satisfied by our mechanism) are not compatible with implementation of the first-best contracts.
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 Springer in its journal Review of Economic Design.
Volume (Year): 6 (2001)
Issue (Month): 1 ()
Note: Received: 27 July 1998 / Accepted: 26 May 2000
Contact details of provider:
Web page: http://link.springer.de/link/service/journals/10058/index.htm
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Pablo Amorós, 2003.
"Nash Implementation and Uncertain Renegotiation,"
Economic Working Papers at Centro de Estudios Andaluces
E2003/27, Centro de Estudios Andaluces.
- Matthew O. Jackson, 2001.
"A crash course in implementation theory,"
Social Choice and Welfare,
Springer, vol. 18(4), pages 655-708.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F Baum).
If references are entirely missing, you can add them using this form.