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Stochastic and deterministic menus in common agency games

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  • Gwenael Piaser

    () (Universita Ca' Foscari di Venezia)

Abstract

In this note, we argue that in Common Agency games the restriction todeterministic menus is critical. We give an simple example, with complete information and no moral hazard,where an equilibrium is not robust to the introduction of stochastic menus.

Suggested Citation

  • Gwenael Piaser, 2005. "Stochastic and deterministic menus in common agency games," Economics Bulletin, AccessEcon, vol. 4(11), pages 1-6.
  • Handle: RePEc:ebl:ecbull:eb-05d80017
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    References listed on IDEAS

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    3. ATTAR, Andrea & MAJUMDAR, Dipjyoti & PIASER, Gwenaêl & PORTEIRO, Nicolàs, 2003. "Common agency games with separable preferences," CORE Discussion Papers 2003102, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    5. David Martimort & Lars Stole, 2002. "The Revelation and Delegation Principles in Common Agency Games," Econometrica, Econometric Society, vol. 70(4), pages 1659-1673, July.
    6. Strausz, Roland, 2003. "Deterministic mechanisms and the revelation principle," Economics Letters, Elsevier, vol. 79(3), pages 333-337, June.
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    Cited by:

    1. ATTAR, Andrea & MAJUMDAR, Dipjyoti & PIASER, Gwenaêl & PORTEIRO, Nicolàs, 2003. "Common agency games with separable preferences," CORE Discussion Papers 2003102, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

    More about this item

    Keywords

    Delegation Principle;

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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