Mailath, George J.; Postlewaite, Andrew; Samuelson, Larry - Department of Economics, University of Pennsylvania - 2013
We analyze a model in which agents make investments and then match into pairs to create a surplus. The agents can make transfers to reallocate their pretransfer ownership claims on the surplus. Mailath, Postlewaite, and Samuelson (2013) showed that when investments are unobservable, equilibrium...