Eswaran, Mukesh; Kotwal, Ashok - In: RAND Journal of Economics 15 (1984) 4, pp. 578-581
It has recently been suggested in the agency literature that moral hazard in teams can be dealt with by introducing a third party who breaks the budget-balancing constraint, and that this facilitates the design of contracts that can sustain the Pareto optimum as a (perfect) Nash equilibrium....