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Common Agency with Non-Delegation or Imperfect Commitment

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  • Seungjin Han
  • Siyang Xiong

Abstract

Inspired by Szentes' critique (Szentes (2009)), we study common agency models with non-delegated contracts. In such a setup, we prove that the menu theorem in Peters (2001) holds partially only under some particular information structure, and we use examples to show that it fails generally. Furthermore, we prove a menu-of-menu-with-recommendation theorem in our models. Finally, we show that our results can beeasily extended to common agency with imperfect commitment a la Bester and Strausz (2000, 2001, 2007).

Suggested Citation

  • Seungjin Han & Siyang Xiong, 2022. "Common Agency with Non-Delegation or Imperfect Commitment," Department of Economics Working Papers 2022-05, McMaster University.
    • Handle: RePEc:mcm:deptwp:2022-05
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    common agency; non-delegation; imperfect commitment; menu theorem; menu of menus with recommendation;
    All these keywords.

    JEL classification:

    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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