The Principal-Agent Matching Market

Dam, Kaniska; Pérez-Castrillo, David

doi:10.2139/ssrn.413865

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The Principal-Agent Matching Market

40 Pages Posted: 7 Jun 2003

See all articles by Kaniska Dam

Kaniska Dam

Catholic University of Louvain (UCL) - Center for Operations Research and Econometrics (CORE)

David Pérez-Castrillo

Universidad Autonoma de Barcelona; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: May 2003

Abstract

We propose a model based on competitive markets in order to analyse an economy with several principals and agents. We model the principal-agent economy as a two-sided matching game and characterise the set of stable outcomes of this principal-agent matching market. A simple mechanism to implement the set of stable outcomes is proposed. Finally, we put forward examples of principal-agent economies where the results fit.

Keywords: Principal-agent, Moral Hazard, Matching, Implementation

JEL Classification: C78, D82, D78

Suggested Citation: Suggested Citation

Dam, Kaniska and Pérez-Castrillo, David, The Principal-Agent Matching Market (May 2003). Available at SSRN: https://ssrn.com/abstract=413865 or http://dx.doi.org/10.2139/ssrn.413865