We consider a model where agents work in sequence on a project, share information not available to the principal, and can collude.

Laboratory and field studies of time preference find that discount rates are much greater in the short-run than in the long-run. Hyperbolic discount functions capture this property. This paper solves the decision problem of a hyperbolic consumer who faces stochastic income and a borrowing...

We suppose the principal not only designs a mechanism, but can participate as a plyer. The result is a Bayesian model where one player, the pricipal has no information, and the remaining players have complete information.