Mediation in Situations of Conflict and Limited Commitment
We study the reasons and conditions under which mediation is beneficial when a principal needs information from an agent to implement an action. Assuming a strong form of limited commitment, the principal may employ a mediator who gathers information and makes nonbinding proposals. We show that a partial revelation of information is more effective through a mediator than through the agent himself. This implies that mediation is strictly helpful if and only if the likelihood of a conflict of interest is positive but not too high. The value of mediation depends nonmonotonically on the degree of conflict. Our insights extend to general models of contracting with imperfect commitment. Copyright 2005, Oxford University Press.
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.
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.
Volume (Year): 21 (2005)
Issue (Month): 2 (October)
|Contact details of provider:|| Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK|
Fax: 01865 267 985
Web page: http://jleo.oupjournals.org/
|Order Information:||Web: http://www.oup.co.uk/journals|
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.:
- Forges, Francoise M, 1986.
"An Approach to Communication Equilibria,"
Econometric Society, vol. 54(6), pages 1375-1385, November.
- F. Forges, 2010. "An Approach to Communication Equilibrium," Levine's Working Paper Archive 516, David K. Levine.
- Forges, F., 1984. "An approach to communication equilibria," CORE Discussion Papers 1984035, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- FORGES, Françoise, "undated". "An approach to communication equilibria," CORE Discussion Papers RP 721, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- FORGES, Françoise, "undated".
"Can sunspots replace a mediator?,"
CORE Discussion Papers RP
825, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Jean-Jacques LAFFONT & Jean TIROLE, 1990.
"Adverse Selection and Renegotiation in Procurement,"
Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP)
9005, Université de Lausanne, Faculté des HEC, DEEP.
- Jean-Jacques Laffont & Jean Tirole, 1990. "Adverse Selection and Renegotiation in Procurement," Review of Economic Studies, Oxford University Press, vol. 57(4), pages 597-625.
- Laffont, Jean-Jacques & Tirole, Jean., 1988. "Adverse Selection and Renegotiation in Procurement," Working Papers 665, California Institute of Technology, Division of the Humanities and Social Sciences.
- Kay Mitusch & Roland Strausz, "undated". "Mediators and Mechanism Design: Why Firms Hire Consultants," Papers 005, Departmental Working Papers.
- Myerson, Roger B, 1986.
"Multistage Games with Communication,"
Econometric Society, vol. 54(2), pages 323-358, March.
- Matthews, Steven A. & Postlewaite, Andrew, 1989.
"Pre-play communication in two-person sealed-bid double auctions,"
Journal of Economic Theory,
Elsevier, vol. 48(1), pages 238-263, June.
- Steven A. Matthews & Andrew Postlewaite, 1987. "Pre-Play Communication in Two-Person Sealed-Bid Double Auctions," Discussion Papers 744R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Jean-Jacques Laffont & Jean Tirole, 1985.
"The Dynamics of Incentive Contracts,"
397, Massachusetts Institute of Technology (MIT), Department of Economics.
- Fudenberg, Drew & Levine, David I & Maskin, Eric, 1994.
"The Folk Theorem with Imperfect Public Information,"
Econometric Society, vol. 62(5), pages 997-1039, September.
- Drew Fudenberg & David K. Levine & Eric Maskin, 1994. "The Folk Theorem with Imperfect Public Information," Levine's Working Paper Archive 394, David K. Levine.
- Drew Fudenberg & David K. Levine & Eric Maskin, 1994. "The Folk Theorem with Imperfect Public Information," Levine's Working Paper Archive 2058, David K. Levine.
- Fudenberg, D. & Levine, D.K. & Maskin, E., 1989. "The Folk Theorem With Inperfect Public Information," Working papers 523, Massachusetts Institute of Technology (MIT), Department of Economics.
- Françoise Forges, 1990. "Equilibria with Communication in a Job Market Example," The Quarterly Journal of Economics, Oxford University Press, vol. 105(2), pages 375-398.
- Baker, George & Gibbons, Robert & Murphy, Kevin J, 1999. "Informal Authority in Organizations," Journal of Law, Economics and Organization, Oxford University Press, vol. 15(1), pages 56-73, April.
- V. Crawford & J. Sobel, 2010.
"Strategic Information Transmission,"
Levine's Working Paper Archive
544, David K. Levine.
- Oliver D. Hart & Jean Tirole, 1988.
"Contract Renegotiation and Coasian Dynamics,"
Review of Economic Studies,
Oxford University Press, vol. 55(4), pages 509-540.
- Robert J. Aumann & Sergiu Hart, 2003.
"Long Cheap Talk,"
Econometric Society, vol. 71(6), pages 1619-1660, November.
- Roger B. Myerson, 1983. "Bayesian Equilibrium and Incentive-Compatibility: An Introduction," Discussion Papers 548, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
When requesting a correction, please mention this item's handle: RePEc:oup:jleorg:v:21:y:2005:i:2:p:467-500. 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: (Oxford University Press)or (Christopher F. Baum)
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.