On multiple-principal multiple-agent models of moral hazard

Andrea Attar, Eloisa Campioni, Gwenaël Piaser () and Uday Rajan
Additional contact information
Gwenaël Piaser: Luxembourg School of Finance, University of Luxembourg

LSF Research Working Paper Series from Luxembourg School of Finance, University of Luxembourg

Abstract: In multiple-principal multiple-agent models of moral hazard, we provide sufficient conditions for the outcomes of pure-strategy equilibria in direct mechanisms to be preserved when principals can offer indirect communication schemes. The conditions include strong robustness in the direct mechanism game, as developed in the literature on competing mechanisms by Peters (2001) and Han (2007a), and a no-correlation property we define. We provide a rationale for restricting attention to take-it or leave-it offers, as is typically done in applications. We show via examples that it is necessary to allow direct mechanisms to be stochastic and to include private recommendations from principals to agents to preserve the corresponding equilibrium outcomes, and that the no-correlation condition is tight.

Keywords: Moral hazard; multiple principal; multiple agent; direct mechanisms. (search for similar items in EconPapers)
JEL-codes: D82 (search for similar items in EconPapers)
Date: 2007
New Economics Papers: this item is included in nep-bec and nep-cta
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.lsf.lu/eng/content/download/485/2648/file/07-01.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.lsf.lu:80 (nodename nor servname provided, or not known)

Related works:
Journal Article: On multiple-principal multiple-agent models of moral hazard (2010)
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:crf:wpaper:07-01

Access Statistics for this paper

More papers in LSF Research Working Paper Series from Luxembourg School of Finance, University of Luxembourg Contact information at EDIRC.
Bibliographic data for series maintained by Martine Zenner ( this e-mail address is bad, please contact ).