Counter Marginalization of Information Rents under Collusion
I study a multi-player mechanism design problem where the players are able to collude. I characterize the extent that the principal can link the compensation level of one of these players to the production performance of the other. I use this characterization result to identify the optimal contract for a principal with budget constraints.
|Date of creation:||23 Jan 2004|
|Date of revision:||27 Jan 2008|
|Contact details of provider:|| Web page: http://www.economics.ubc.ca/|
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.:
- Kofman, F. & Lawarree, J., 1990.
"Collusion in Hierarchical Agency,"
Discussion Papers in Economics at the University of Washington
91-01, Department of Economics at the University of Washington.
- Lucia Quesada, 2003. "Modeling collusion as an informed principal problem," Game Theory and Information 0304002, EconWPA.
- Roland Strausz, .
"Deterministic versus Stochastic Mechanisms in Principal--Agent Models,"
020, Departmental Working Papers.
- Strausz, Roland, 2006. "Deterministic versus stochastic mechanisms in principal-agent models," Journal of Economic Theory, Elsevier, vol. 128(1), pages 306-314, May.
- Antoine Faure-Grimaud & Jean-Jacques Laffont & David Martimort, 2003.
"Collusion, Delegation and Supervision with Soft Information,"
Review of Economic Studies,
Oxford University Press, vol. 70(2), pages 253-279.
- Faure-Grimaud, Antoine & Laffont, Jean-Jacques & Martimort, David, 2003. "Collusion, Delegation and Supervision with Soft Information," IDEI Working Papers 167, Institut d'Économie Industrielle (IDEI), Toulouse.
- Laffont, Jean-Jacques & Martimort, David, 1998.
"Mechanism Design with Collusion and Correlation,"
IDEI Working Papers
81, Institut d'Économie Industrielle (IDEI), Toulouse.
- Bernard Caillaud & Philippe Jehiel, 1998. "Collusion in Auctions with Externalities," RAND Journal of Economics, The RAND Corporation, vol. 29(4), pages 680-702, Winter.
- Fahad Khalil & Jacques Lawarree, 2006.
"Incentives for corruptible auditors in the absence of commitment,"
UWEC-2005-09-P, University of Washington, Department of Economics.
- Fahad Khalil & Jacques Lawarree, 2004. "Incentives for Corruptible Auditors in the Absence of Commitment," Working Papers UWEC-2003-02-FC, University of Washington, Department of Economics.
- Yeon-Koo Che & Jinwoo Kim, 2006. "Robustly Collusion-Proof Implementation," Econometrica, Econometric Society, vol. 74(4), pages 1063-1107, 07.
- James M. Malcomson, 1986. "Rank-Order Contracts for a Principal with Many Agents," Review of Economic Studies, Oxford University Press, vol. 53(5), pages 807-817.
- Jullien, Bruno, 1997.
"Participation Constraints in Adverse Selection Models,"
IDEI Working Papers
67, Institut d'Économie Industrielle (IDEI), Toulouse.
- Jullien, Bruno, 2000. "Participation Constraints in Adverse Selection Models," Journal of Economic Theory, Elsevier, vol. 93(1), pages 1-47, July.
- Gregory Pavlov, 2006. "Colluding on Participation Decisions," Boston University - Department of Economics - Working Papers Series WP2006-030, Boston University - Department of Economics.
- Peters, Michael, 2001.
"Common Agency and the Revelation Principle,"
Econometric Society, vol. 69(5), pages 1349-72, September.
- Maggi G. & Rodriguez-Clare A., 1995. "On Countervailing Incentives," Journal of Economic Theory, Elsevier, vol. 66(1), pages 238-263, June.
- Levaggi, Rosella, 1999. "Optimal Procurement Contracts under a Binding Budget Constraint," Public Choice, Springer, vol. 101(1-2), pages 23-37, October.
- Stefano DellaVigna & Ulrike Malmendier, 2006. "Paying Not to Go to the Gym," American Economic Review, American Economic Association, vol. 96(3), pages 694-719, June.
- Celik, Gorkem, 2004.
"Mechanism Design with Collusive Supervision,"
Microeconomics.ca working papers
celik-04-09-13-05-42-19, Vancouver School of Economics, revised 06 Aug 2008.
- Laffont, J.J. & Martimort, D., 1996.
"Collusion Under Asymmetric Information,"
95.389, Toulouse - GREMAQ.
- Nahum D. Melumad & Dilip Mookherjee & Stefan Reichelstein, 1995. "Hierarchical Decentralization of Incentive Contracts," RAND Journal of Economics, The RAND Corporation, vol. 26(4), pages 654-672, Winter.
- Sergei Severinov, 2008. "The value of information and optimal organization," RAND Journal of Economics, RAND Corporation, vol. 39(1), pages 238-265.
- Tracy R. Lewis & David E.M. Sappington, 1995. "Optimal Capital Structure in Agency Relationships," RAND Journal of Economics, The RAND Corporation, vol. 26(3), pages 343-361, Autumn.
- Martin Gaynor & James B. Rebitzer & Lowell J. Taylor, 2004. "Physician Incentives in Health Maintenance Organizations," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 915-931, August.
When requesting a correction, please mention this item's handle: RePEc:ubc:pmicro:celik-04-01-23-02-48-07. 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: (Maureen Chin)
If references are entirely missing, you can add them using this form.