Truthful Revelation Mechanisms for Simultaneous Common Agency Games

Alessandro Pavan, Giacomo Calzolari
2010 American Economic Journal: Microeconomics  
This paper considers games in which multiple principals contract simultaneously and noncooperatively with the same agent. We introduce a new class of revelation mechanisms which, although they do not always permit a complete equilibrium characterization, do facilitate the characterization of the equilibrium outcomes that are typically of interest in applications. We then show how these mechanisms can be put to work in applications such as menu auctions, competition in nonlinear tari¤s, and
more » ... hazard settings. Lastly, we show how one can enrich the revelation mechanisms, albeit at a cost of an increase in complexity, to characterize all possible equilibrium outcomes, including those sustained by non-Markov strategies and/or mixed-strategy pro...les. JEL Classi...cation Numbers: D89, C72.
doi:10.1257/mic.2.2.132 fatcat:jtggnm4bkref3ahvklcxgbvcz4