On multiple-principal multiple-agent models of moral hazard

B-Tier
Journal: Games and Economic Behavior
Year: 2010
Volume: 68
Issue: 1
Pages: 376-380

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We provide two examples in a pure moral hazard setting with two principals and two agents. Example 1 shows that a strongly robust equilibrium in simple (direct) mechanisms can no longer be sustained as an equilibrium when a principal can deviate to an indirect communication scheme. Conversely, an equilibrium with one principal offering an indirect mechanism cannot be replicated as an equilibrium in simple mechanisms. Example 2 shows more directly that a payoff profile that can be achieved in equilibrium when one principal offers an indirect mechanism cannot be achieved as an equilibrium profile in simple mechanisms.

Technical Details

RePEc Handle
repec:eee:gamebe:v:68:y:2010:i:1:p:376-380
Journal Field
Theory
Author Count
4
Added to Database
2026-01-24