Trading with a common agent under complete information: A characterization of Nash equilibria

A-Tier
Journal: Journal of Economic Theory
Year: 2009
Volume: 144
Issue: 1
Pages: 296-311

Score contribution per author:

2.018 = (α=2.02 / 2 authors) × 2.0x A-tier

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

Abstract

We analyze an abstract model of trading where N principals submit quantity-payment schedules that describe the contracts they offer to an agent, and the agent then chooses how much to trade with every principal. This represents a special class of common agency games with complete information. We study all the subgame perfect Nash equilibria of these games, not only truthful ones, providing a complete characterization of equilibrium payoffs. In particular, we show that the equilibrium that is Pareto-dominant for the principals is not truthful when there are more than two of them. We also provide a partial characterization of equilibrium strategies.

Technical Details

RePEc Handle
repec:eee:jetheo:v:144:y:2009:i:1:p:296-311
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25