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Strongly robust equilibrium and...
Journal article

Strongly robust equilibrium and competing-mechanism games

Abstract

This paper formulates the notion of a strongly robust equilibrium relative to a set of mechanisms specified in any competing-mechanism game of complete information with multiple principals and multiple agents. It shows that when agents’ efforts are contractible, any strongly robust pure-strategy equilibrium relative to single-incentive contracts persists, regardless of the continuation equilibrium that agents play upon any principal's deviation to any complex mechanism.

Authors

Han S

Journal

Journal of Economic Theory, Vol. 137, No. 1, pp. 610–626

Publisher

Elsevier

Publication Date

November 1, 2007

DOI

10.1016/j.jet.2007.01.013

ISSN

0022-0531

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