We analyze an adverse selection environment with third party supervision. The supervisor is partly informed of the agent's type. The supervisor and the agent collude while interacting with the principal. Contracting with the agent directly and ignoring the presence of the supervisor constitutes...

French Abstract: Relations réciproques et désign de mécanisme. Nous étudions un jeu en information incomplète dans lequel les joueurs peuvent coordonner leurs actions en passant des contrats entre eux. Nous modélisons cette relation comme un contrat réciproque où chaque joueur a la...

We study information flows in an organization with a top management (principal) and multiple subunits (agents) with private information that determines the organization's aggregate efficiency. Under centralization, eliciting the agents' private information may induce the principal to manipulate...

We study the optimal auction problem with participation costs in the symmetric independent private values setting, where bidders know their valuations when they make independent participation decisions. After characterizing the optimal auction in terms of participation cutoffs, we provide an...