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...