When the presence of limited liability restricts a principal from imposing monetary fines on an agent in case of poor performance, the principal might use other kinds of punishment threats to deter the agent from shirking. We show that under the optimal contract in this case, the principal sets...

The paper considers multisided matching games with transfereable utility using the approach of cooperative game theory. Stable matchings are shown to exist when characteristic functions are supermodular, i.e., agents' abilities to contribute to the value of a coalition are complementary across...