This paper considers the effect of contracting limitations in risk-sharing networks, arisingfor example from observability, verifiability, complexity or cultural constraints. Wederive necessary and sufficient conditions for Pareto efficiency under these constraints ina general setting, and we...

Games with asymmetric information play a prominent role in the theoretical literature of malpractice disputes. The common modeling framework in many papers is a game in extensive form which consists of two stages. In the first stage, one agent makes a settlement demand, and the other agent...