Advanced Search
MyIDEAS: Login

On multiple-principal multiple-agent models of moral hazard

Contents:

Author Info

  • Andrea Attar
  • Eloisa Campioni
  • Gwenaël Piaser

    ()
    (Luxembourg School of Finance, University of Luxembourg)

  • Uday Rajan

Abstract

In multiple-principal multiple-agent models of moral hazard, we provide sufficient conditions for the outcomes of pure-strategy equilibria in direct mechanisms to be preserved when principals can offer indirect communication schemes. The conditions include strong robustness in the direct mechanism game, as developed in the literature on competing mechanisms by Peters (2001) and Han (2007a), and a no-correlation property we define. We provide a rationale for restricting attention to take-it or leave-it offers, as is typically done in applications. We show via examples that it is necessary to allow direct mechanisms to be stochastic and to include private recommendations from principals to agents to preserve the corresponding equilibrium outcomes, and that the no-correlation condition is tight.

Download Info

If 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.
File URL: http://www.lsf.lu/eng/content/download/485/2648/file/07-01.pdf
Our checks indicate that this address may not be valid because: 404 Not Found (http://www.lsf.lu/eng/content/download/485/2648/file/07-01.pdf [302 Found]--> http://www.uni.lu/luxembourg_school_of_finance/eng/content/download/485/2648/file/07-01.pdf [301 Moved Permanently]--> http://wwwfr.uni.lu/luxembourg_school_of_finance/eng/content/download/485/2648/file/07-01.pdf). If this is indeed the case, please notify (Martine Zenner)
Download Restriction: no

Bibliographic Info

Paper provided by Luxembourg School of Finance, University of Luxembourg in its series LSF Research Working Paper Series with number 07-01.

as in new window
Length:
Date of creation: 2007
Date of revision:
Handle: RePEc:crf:wpaper:07-01

Contact details of provider:
Postal: Bâtiment K2, 4, rue Albert Borschette, L-1246 Luxembourg-Kirchberg
Phone: +352 46 66 44 6335
Fax: +352 46 66 44 6811
Email:
Web page: http://wwwen.uni.lu/luxembourg_school_of_finance
More information through EDIRC

Related research

Keywords: Moral hazard; multiple principal; multiple agent; direct mechanisms.;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Aumann, Robert J, 1987. "Correlated Equilibrium as an Expression of Bayesian Rationality," Econometrica, Econometric Society, vol. 55(1), pages 1-18, January.
  2. Peters, Michael, 2001. "Common Agency and the Revelation Principle," Econometrica, Econometric Society, vol. 69(5), pages 1349-72, September.
  3. Larry Epstein & Michael Peters, 1996. "A Revelation Principle For Competing Mechanisms," Working Papers peters-96-02, University of Toronto, Department of Economics.
  4. Myerson, Roger B., 1982. "Optimal coordination mechanisms in generalized principal-agent problems," Journal of Mathematical Economics, Elsevier, vol. 10(1), pages 67-81, June.
  5. Han, Seungjin, 2007. "Strongly robust equilibrium and competing-mechanism games," Journal of Economic Theory, Elsevier, vol. 137(1), pages 610-626, November.
  6. David Martimort & Lars Stole, 2001. "The Revelation and Delegation Principles in Common Agency Games," CESifo Working Paper Series 575, CESifo Group Munich.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Andrea Attar & Eloisa Campioni & Gwenael Piaser & Uday Rajan, 2011. "Competing Mechanism Games of Moral Hazard: Communication and Robustness," CEIS Research Paper 196, Tor Vergata University, CEIS, revised 10 Jun 2011.
  2. Gwenael Piaser, 2005. "Stochastic and deterministic menus in common agency games," Economics Bulletin, AccessEcon, vol. 4(11), pages 1-6.
  3. repec:ebl:ecbull:v:4:y:2005:i:11:p:1-6 is not listed on IDEAS
  4. Attar, Andrea & Campioni, Eloisa & Piaser, Gwenaël, 2013. "Two-sided communication in competing mechanism games," Journal of Mathematical Economics, Elsevier, vol. 49(1), pages 62-70.
  5. Andrea Attar & Eloisa Campioni & Gwenael Piaser, 2011. "Information Revelation in Competing Mechanism Games," CEIS Research Paper 205, Tor Vergata University, CEIS, revised 04 Jul 2011.
  6. Gwenaël Piaser, 2014. "Incentive compatible mechanisms in multiprincipal multiagent games," Working Papers 2014-049, Department of Research, Ipag Business School.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:crf:wpaper:07-01. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Martine Zenner).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.