Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
956871 | Journal of Economic Theory | 2010 | 19 Pages |
Abstract
We investigate the adverse selection problem where a principal delegates multiple tasks to an agent. We characterize the virtually implementable social choice functions by using the linking mechanism proposed by Jackson and Sonnenschein (2007) [20] that restricts the message spaces. The principal does not require any incentive wage schemes and can therefore avoid any information rent and welfare loss. We show the resemblance between the functioning of this message space restriction and that of incentive wage schemes. We also extend the results of the single-agent model to the multi-agent model.
Related Topics
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Authors
Hitoshi Matsushima, Koichi Miyazaki, Nobuyuki Yagi,