Existence of equilibrium in common agency games with adverse selection |
| |
Authors: | Guilherme Carmona Jos Fajardo |
| |
Institution: | aUniversidade Nova de Lisboa, Faculdade de Economia, Campus de Campolide, 1099-032 Lisboa, Portugal;bIBMEC Business School, Av. Presidente Wilson 118, 20030 020, Rio de Janeiro, Brazil |
| |
Abstract: | We establish the existence of subgame perfect equilibria in general menu games, known to be sufficient to analyze common agency problems. Our main result states that every menu game satisfying enough continuity properties has a subgame perfect equilibrium. Despite the continuity assumptions that we make, discontinuities naturally arise due to the absence, in general, of continuous optimal choices for the agent. Our approach, then, is based on (and generalizes) the existence theorem of Simon, L., Zame, W., 1990. Discontinuous games and endogenous sharing rules. Econometrica 58 (4), 861–872] designed for discontinuous games. |
| |
Keywords: | Common agency Menu games Subgame perfect equilibrium |
本文献已被 ScienceDirect 等数据库收录! |
|