Engel, Eduardo; Fischer, Ronald; Galetovic, Alexander - Cowles Foundation for Research in Economics, Yale University - 2002
A principal, who wants prices to be as lowas possible, contracts with agents who would like to charge the monopoly … the particular duopoly game played ex post. We apply this condition to three canonical examples -- procurement, royalty … contracts and dealerships -- and find that whenever marginal revenue for the final good is decreasing in the quantity sold, the …