Efficiency in partnerships with joint monitoring

Research output: Contribution to journalArticlepeer-review

Abstract

This paper examines deterministic partnerships where a single partner observes the actions taken by a subset of the other partners and issues a report conditional on that observation. No other partner has any additional information. In such a model, whenever the observing partner can see the action chosen by at least one other partner, the efficient action vector can be sustained in a perfect Bayesian equilibrium by sharing rule that exhibits budget balance and limited liability.Journal of Economic Literatureclassification numbers: C7, D7, D8, L2

Original languageEnglish (US)
Pages (from-to)285-299
Number of pages15
JournalJournal of Economic Theory
Volume77
Issue number2
DOIs
StatePublished - Dec 1997
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics

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