The Principal-Agent Matching Market
40 Pages Posted: 7 Jun 2003
Date Written: May 2003
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