We study a capital market in which multiple lenders sequentially attempt at financing a single borrower under moral hazard. We show that restricting lenders to post take-it-or-leave-it offers involves a severe loss of generality: none of the equilibrium outcomes arising in this scenario survives...

This note presents a counter-example to Theorems 3 and 4 in Peters (2003, J. Eco. Theory) and suggests that indifference of the single agent with respect to principals' offers plays an important role in the failure of the Revelation Principle in Common Agency games. In addition we provide a new...