| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5072894 | Games and Economic Behavior | 2008 | 6 Pages |
Abstract
We illustrate, by means of two examples, why assuming the principals offer simple menus (i.e. collections of payoff-relevant alternatives) as opposed to more general mechanisms may preclude a complete characterization of the set of equilibrium outcomes in certain sequential contracting environments. We then discuss how refinements of the solution concept, or enrichments of the menus that allow for recommendations, may restore the possibility of using menus to obtain a complete equilibrium characterization.
Keywords
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Authors
Giacomo Calzolari, Alessandro Pavan,