19 Pages Posted: 30 Oct 2001
Date Written: October 2001
In the context of common agency adverse-selection games we illustrate that the revelation principle cannot be applied to study equilibria of the multi-principal games. We then demonstrate that an extension of the taxation principle - what we term the delegation principle - can be used to characterize the set of all common agency equilibria.
Keywords: Revelation Principle, Delegation Principle, Taxation Principle, Common Agency, Adverse Selection
JEL Classification: D82, L51
Suggested Citation: Suggested Citation
Martimort, David and Stole, Lars, The Revelation and Delegation Principles in Common Agency Games (October 2001). CESifo Working Paper Series No. 575. Available at SSRN: https://ssrn.com/abstract=287118