We consider the mechanism design problem when agents' types are multidimensional and continuous, and their valuations are interdependent. If there are at least three agents whose types satisfy a weak correlation condition, then for any decision rule there exist balanced transfers that render...

We analyze the risk level chosen by agents that have private information regarding their quality. We show that even risk-neutral agents will choose risk strategically to enhance their reputation in the market, in a manner determined by the risk choices of other agents. Our model employs the...

This paper studies decision making by successful entrepreneurs and their agents. Since entrepreneurs decisions are often influenced by their agents' advice, understanding the behavior of both involved parties is crucial in analyzing observed decisions. To this end, a sample of successful...