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Implementing Coordinated Team Play

Anil Arya (), Jonathan Glover and John S. Hughes

Corporate Finance & Organizations from Ohio State University

Abstract: This note studies a moral hazard model of joint production in which there are strong gains to coordination. The mechanism we propose for resolving the tacit collusion problem that arises in our setting is simple. A key aspect of the mechanism is the use of at- will contracts which provide the agents with the option to quit at any time.

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Journal Article: Implementing Coordinated Team Play (1997) Downloads
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