Bargaining power affects the terms of trade negotiated between agents in the economy. When multiple players with interrelated payoffs negotiate contracts, the outcome of each negotiation depends on all the players' bargaining powers. In a model in which a buyer negotiates in sequence with two...

We analyze a multiple-activity, principal-agent model in which the activities are naturally substitutable for the agent and complementary for the principal. A basic result is that the optimal compensation must cause the agent to view the activities as complements. This complementarity is...

We analyze a multiple-activity principal-agent model in which the activities are naturally substitutable for the agent and complementary for the principal. A basic result is that the optimal compensation mechanism must cause the agent to view the activities as complements. This complementarity...