Article ID Journal Published Year Pages File Type
957767 Journal of Economic Theory 2006 30 Pages PDF
Abstract

Consider Holmström's moral hazard in teams problem when there are n agents, each agent i   has an aiai-dimensional strategy space and output is m  -dimensional. We show that a compensation mechanism that satisfies budget balance, limited liability and implements an efficient allocation generically exists if and only if ∑i=1nai/(n-1)

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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