Competition between asymmetrically informed principals

B-Tier
Journal: Economic Theory
Year: 1997
Volume: 10
Issue: 2
Pages: 227-240

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

This paper derives the set of equilibria for common agency games in which the principals compete in piece rates and lump sum payments and one principal has incomplete information about the agent's preferences. We show that the uninformed principal's expected payoff function is discontinuous with respect to the identity of the marginal agent type. This discontinuity is shown to support an open set of equilibria. For games in which the first-best equilibrium strategies are measurable with respect to the uninformed principal's information partition, this result implies the existence of an open set of Pareto inefficient equilibria.

Technical Details

RePEc Handle
repec:spr:joecth:v:10:y:1997:i:2:p:227-240
Journal Field
Theory
Author Count
2
Added to Database
2026-01-24