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Efficient Contract Design in Multi-Principal Multi-Agent Supply Chains
2006
Social Science Research Network
We consider a general multi-principal multi-agent contracting game in a complete-information supply-chain setting and determine coordinating equilibrium transfer schedules in closed form. The resulting contracts manage to align incentives for decentralized decision-making and achieve first-best channel solutions. We allow for multidimensional actions and arbitrary payoff externalities between all members of the supply chain. For the coordinating contracts to exist it suffices that all payoff
doi:10.2139/ssrn.628084
fatcat:the4cv44ibc3vf6fczmtdqufli