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The Revelation and Delegation Principles in Common Agency Games

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  • David Martimort
  • Lars Stole

Abstract

In the context of common agency adverse-selection games we illustrate that the revelation principle cannot be applied to study equilibria of the multi-principal games. We then demonstrate that an extension of the taxation principle – what we term the “delegation principle” – can be used to characterize the set of all common agency equilibria.

Suggested Citation

  • David Martimort & Lars Stole, 2001. "The Revelation and Delegation Principles in Common Agency Games," CESifo Working Paper Series 575, CESifo.
    • Handle: RePEc:ces:ceswps:_575
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    1. Jerry R. Green & Jean-Jacques Laffont, 1986. "Partially Verifiable Information and Mechanism Design," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(3), pages 447-456.
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