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Implementation without commitment in moral hazard environments

2013/03/05 by Bruno Salcedo, Salcedo, Bruno · 1 citation
Decision Sciences · Social Sciences · Economics, Econometrics and Finance · #Game Theory and Applications #Experimental Behavioral Economics Studies #Economic theories and models

paper · pdf · doi:10.48550/arxiv.1303.0916

Abstract

Interdependent-choice equilibrium is defined as an extension of correlated equilibrium in which the mediator is able to choose the timing of her signals, and observe the actions taken by the players. The set of interdependent-choice equilibria is a nonempty, closed and convex polytope. It characterizes all the outcomes that can be implemented in single shot interactions without repetition, side payments, binding contracts or any other form of delegation.

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