Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
957767 | Journal of Economic Theory | 2006 | 30 Pages |
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
Marco Battaglini,