Contracting with Third Parties

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2009
Volume: 1
Issue: 1
Pages: 75-100

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

In bilateral holdup and moral hazard in teams models, introducing a third party allows implementation of the first best, even if renegotiation is possible. Fines paid to the third party provide incentives for truth-telling and investment. This result holds even if the third party is corruptible, as long as the grand coalition has access to the same contracting technology as any colluding subcoalition. (JEL D86, D82)

Technical Details

RePEc Handle
repec:aea:aejmic:v:1:y:2009:i:1:p:75-100
Journal Field
General
Author Count
2
Added to Database
2026-01-24