The paper characterises the choice rules that can be implemented when agents are unable to commit themselves not to renegotiate the mechanism.

In the last few years, a new area has emerged in economic theory, which goes under the heading of "incomplete contracting". However, almos since its inception, the theory has been under attach for its lack of rigorous foundations. In this paper, we evaluate some of the criticisms that have been...

We develop a model of hierarchies based on the allocation of authority. A firm's owners have ultimate authority over a firm's decisions, but they have limited time or capacity to exercise this authority. Hence owners must delegate authority to subordinates. However, these subordinates also have...