Felli, Leonardo; Hortala-Vallve, Rafael - CESifo - 2015
behavior, that takes the form of collusion or blackmail, on the part of members of a simple hierarchical structure. We focus on …-blowing, creates incentives for the uninformed colluding party to walk out of the side deal and report to the principal that collusion … potential blackmail threat between the colluding parties. However, careful use of whistle-blowing allows the principal to …