This paper explores the private and social benefits from barter exchange in a monetized economy. We first prove a no-trade theorem regarding the ability of firms with double-coincidences-of-wants to negotiate improvements in trade among themselves relative to the market outcomes. We then...

This paper characterizes the equilibrium sets of an intrinsic common agency game with direct externalities between principals both under complete and asymetric information. Direct externalities arise when the contracting variable of one principal affects directly the other pricipal`s payoff....

In the context of common agency adverse-selection games we illustrate that the revelation principle cannot be applied to study equilibria of the multi-principal games. We then demonstrate that an extension of the taxation pricipal - what we term the "delegation priciple" - can be used to...

This paper characterizes the equilibrium sets of an intrinsic common agency game with discrete types and direct revelation mechanisms. After presenting a general algorithm to find the pure -strategy equilibria of this game, we use it to characterize these equilibria when the two principals...

Mandated countertrade is a policy to restrict unilateral imports. A country's government thereby in effect commits domestic firms not to purchase from a foreign trading partner unless there are reciprocal sales. We argue that the policy may be a rational response to fundamental contracting...