Mediators and Mechanism Design: Why Firms Hire Consultants
AbstractThis paper offers a new type of explanation for economic institutions as playing the role of mediators in the sense of Myerson (1985) to facilitate communication in contracting settings with ex ante asymmetric information and limited commitment. It derives necessary and sufficient conditions under which mediation is strictly helpful and provides a straightforward, yet general intuition for this result. As an application of our idea we explain the widely observed use of consultants during the restructure of firms.
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.
Bibliographic InfoPaper provided by Departmental Working Papers in its series Papers with number 005.
Date of creation:
Date of revision:
Contact details of provider:
Find related papers by JEL classification:
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
This paper has been announced in the following NEP Reports:
- NEP-ALL-2001-01-21 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Laffont, Jean-Jacques & Tirole, Jean, 1988.
"The Dynamics of Incentive Contracts,"
Econometric Society, vol. 56(5), pages 1153-75, September.
- Forges, Francoise M, 1986.
"An Approach to Communication Equilibria,"
Econometric Society, vol. 54(6), pages 1375-85, November.
- Forges, Francoise, 1988.
"Can sunspots replace a mediator?,"
Journal of Mathematical Economics,
Elsevier, vol. 17(4), pages 347-368, September.
- Alessandro Fedele & Francesco Liucci & Andrea Mantovani, 2009. "Credit availability in the crisis: the European investment bank group," Working Papers 0913, University of Brescia, Department of Economics.
- Alessandro Fedele & Andrea Mantovani, 2010.
"The Importance of Being Consulted,"
Annals of Economics and Finance,
Society for AEF, vol. 11(2), pages 231-245, November.
- Alessandro Fedele & Andrea Mantovani & Francesco Liucci, 2010.
"Credit Availability in the crisis: which role for the European Investment Bank Group?,"
1005, University of Brescia, Department of Economics.
- A. Fedele & A. Mantovani & F. Liucci, 2010. "Credit availability in the crisis: which role for the European Investment Bank Group?," Working Papers 699, Dipartimento Scienze Economiche, Universita' di Bologna.
- Kay Mitusch & Roland Strausz, 2000. "Mediation in Situations of Conflict," Econometric Society World Congress 2000 Contributed Papers 0361, Econometric Society.
- Krähmer, Daniel, 2002. "Delegation versus authority," Discussion Papers, Research Unit: Market Processes and Governance FS IV 02-26, Social Science Research Center Berlin (WZB).
- Peter Vida, 2005. "A Detail-free Mediator and the 3 Player Case," IEHAS Discussion Papers 0511, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
- Kay Mitusch & Roland Strausz, 2005.
"Mediation in Situations of Conflict and Limited Commitment,"
Journal of Law, Economics and Organization,
Oxford University Press, vol. 21(2), pages 467-500, October.
- Mitusch, Kay & Strausz, Roland, 2004. "Mediation in Situations of Conflict and Limited Commitment," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 24, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Roland Strausz & Kay Mitusch, . "Mediation in Situations of Conflict and Limited Commitment," Papers 023, Departmental Working Papers.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (XXX).
If references are entirely missing, you can add them using this form.