Non-Intrinsic Common Agency

17 Pages Posted: 13 Mar 2000

See all articles by Giacomo Calzolari

Giacomo Calzolari

European University Institute - Economics Department (ECO); Centre for Economic Policy Research (CEPR); University of Bologna

Carlo Scarpa

University of Brescia; NERA Economic Consulting

Date Written: November 1999

Abstract

In this paper we analyse a common agency model in which agents can choose with how many principals they want to work for, while principals cannot condition contracts on the agent's decision to accept other contracts. In this case of "non-intrinsic" common agency we characterise the equilibrium. Unless the substitutability between the two outputs is very strong, optimality conditions for principals' contracts are the same as with intrinsic common agency. However, principals suffer from reciprocal competition, which with "moderate" substitutability increases the informational rent agents obtain in equilibrium.

JEL Classification: L14, L41, D82

Suggested Citation

Calzolari, Giacomo and Scarpa, Carlo, Non-Intrinsic Common Agency (November 1999). FEEM Working Paper No. 84.99. Available at SSRN: https://ssrn.com/abstract=200558 or http://dx.doi.org/10.2139/ssrn.200558

Giacomo Calzolari (Contact Author)

European University Institute - Economics Department (ECO) ( email )

Villa la Fonte
Via delle fontanelle 18
San Domenico di Fiesole, Florence 50014
Italy

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

University of Bologna ( email )

Piazza Scaravilli 2
I-40126 Bologna
Italy

HOME PAGE: http://sites.google.com/view/giacomo-calzolari

Carlo Scarpa

University of Brescia ( email )

Via San Faustino 74B
Dipartimento di Scienze Economiche
25122 Brescia
Italy
+39+030+2988+833 (Phone)
+39+030+2988+839/840 (Fax)

NERA Economic Consulting ( email )

50 Main Street, 14th Floor
White Plains, NY 10606
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
128
Abstract Views
1,310
rank
223,808
PlumX Metrics