Ensthaler, Ludwig; Huck, Steffen; Leutgeb, Johannes Josef - 2019 - 2nd revision September 2019
From the regulation of sports to lawmaking in parliament, in many situations one group of people ("agents") make decisions that affect the payoffs of others ("principals") who may offer action-contingent transfers in order to sway the agents' decisions. Prat and Rustichini (2003) characterize...
