Common Agency with Informed Principals: Menus and Signals
AbstractIn this paper I consider games in which multiple informed principals simultaneously compete to influence the decisions of a common agent. I focus on the problem of characterizing the equilibrium outcomes of such games. I first show that, to solve this problem, one can invoke neither Myerson’s Inscrutability Principle, which holds in agency games with one informed principal, nor the Extended Taxation Principle, which holds in common-agency games with uninformed principals. I then provide two characterizations of the equilibrium outcomes: one for games in which the principals delegate the final decisions to the agent, and one for games in which they participate with the agent in making such decisions. JEL Classification Numbers: C72, D82, D83, D86
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Bibliographic InfoPaper provided by Northwestern University, Center for Mathematical Studies in Economics and Management Science in its series Discussion Papers with number 1541.
Date of creation: 06 Jun 2011
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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
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-21 (All new papers)
- NEP-CTA-2011-11-21 (Contract Theory & Applications)
- NEP-GTH-2011-11-21 (Game Theory)
- NEP-HPE-2011-11-21 (History & Philosophy of Economics)
- NEP-MIC-2011-11-21 (Microeconomics)
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