Common Agency with Non-Delegation or Imperfect Commitment

Seungjin Han and Siyang Xiong

Papers from arXiv.org

Abstract: In classical contract theory, we usually impose two assumptions: delegated contracts and perfect commitment. While the second assumption is demanding, the first one suffers no loss of generality. Following this tradition, current common-agency models impose delegated contracts and perfect commitment. We first show that non-delegated contracts expand the set of equilibrium outcomes under common agency. Furthermore, the powerful menu theorem for common agency (Peters (2001) and Martimort and Stole (2002)}) fails for either non-delegated contracts or imperfect commitment. We identify canonical contracts in such environments, and re-establish generalized menu theorems. Given imperfect commitment, our results for common-agency models are analogous to those in Bester and Strausz (2001) and Doval and Skreta (2012) for the classical contract theory, which re-establish the revelation principle.

Date: 2023-09
New Economics Papers: this item is included in nep-cta and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://arxiv.org/pdf/2309.11595 Latest version (application/pdf)

Related works:
Working Paper: Common Agency with Non-Delegation or Imperfect Commitment (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2309.11595

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().