Stochastic and deterministic menus in common agency games

In this note, we argue that in Common Agency games the restriction todeterministic menus is critical. We give an simple example, with complete information and no moral hazard,where an equilibrium is not robust to the introduction of stochastic menus.

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Year of publication:	2005-09-23
Authors:	Piaser, Gwenael
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 4.2005, 11, p. 1-6
Publisher:	AccessEcon
Subject:	Delegation Principle

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Extent:	application/pdf
Type of publication:	Article
Classification:	D8 - Information and Uncertainty
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010630414