Existence of equilibrium in common agency games with adverse selection Export

@article{citeulike:4919835, abstract = {We establish the existence of subgame perfect equilibria in general menu games, known to be sufficient to analyze common agency problems. Our main result states that every menu game satisfying enough continuity properties has a subgame perfect equilibrium. Despite the continuity assumptions that we make, discontinuities naturally arise due to the absence, in general, of continuous optimal choices for the agent. Our approach, then, is based on (and generalizes) the existence theorem of [Simon, L., Zame, W., 1990. Discontinuous games and endogenous sharing rules. Econometrica 58 (4), 861–872] designed for discontinuous games.}, author = {Carmona, Guilherme and Fajardo, Jos\'{e}}, citeulike-article-id = {4919835}, citeulike-linkout-0 = {http://dx.doi.org/10.1016/j.geb.2008.10.003}, citeulike-linkout-1 = {http://linkinghub.elsevier.com/retrieve/pii/S089982560800184X}, doi = {10.1016/j.geb.2008.10.003}, issn = {08998256}, journal = {Games and Economic Behavior}, keywords = {agency, contract, game\_theory, information}, month = {July}, number = {2}, pages = {749--760}, posted-at = {2009-06-21 09:38:08}, priority = {3}, title = {Existence of equilibrium in common agency games with adverse selection}, url = {http://dx.doi.org/10.1016/j.geb.2008.10.003}, volume = {66}, year = {2009} }

TY - JOUR ID - citeulike:4919835 L3 - citeulike-article-id:4919835 N2 - We establish the existence of subgame perfect equilibria in general menu games, known to be sufficient to analyze common agency problems. Our main result states that every menu game satisfying enough continuity properties has a subgame perfect equilibrium. Despite the continuity assumptions that we make, discontinuities naturally arise due to the absence, in general, of continuous optimal choices for the agent. Our approach, then, is based on (and generalizes) the existence theorem of [Simon, L., Zame, W., 1990. Discontinuous games and endogenous sharing rules. Econometrica 58 (4), 861–872] designed for discontinuous games. IS - 2 JF - Games and Economic Behavior SN - 08998256 EP - 760 TI - Existence of equilibrium in common agency games with adverse selection VL - 66 SP - 749 KW - agency KW - contract KW - game_theory KW - information AU - Carmona, Guilherme AU - Fajardo, José PY - 2009/07// UR - http://dx.doi.org/10.1016/j.geb.2008.10.003 ER -