Common Agency and Coordination: General Theory and Application to Government Policy Making
Avinash Dixit (),
Gene Grossman () and
Journal of Political Economy, 1997, vol. 105, issue 4, 752-69
The authors develop a model of common agency with complete information and general preferences with nontransferable utility, and they prove that the principals' Nash equilibrium in truthful strategies implements an efficient action. The authors apply this theory to the construction of a positive model of public finance, where organized special interests can lobby the government for consumer and producer taxes or subsidies and targeted lump-sum taxes or transfers. The lobbies use only the nondistorting transfers in their noncooperative equilibrium, but their intergroup competition for transfers turns into a prisoners' dilemma in which the government captures all the gain that is potentially available to the parties. Copyright 1997 by the University of Chicago.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (244) Track citations by RSS feed
Downloads: (external link)
http://dx.doi.org/10.1086/262092 full text (application/pdf)
Access to the online full text or PDF requires a subscription.
Working Paper: Common Agency and Coordination: General Theory and Application to Government Policy Making (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ucp:jpolec:v:105:y:1997:i:4:p:752-69
Access Statistics for this article
More articles in Journal of Political Economy from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().