The Biais-Martimort-Rochet Equilibrium With Direct Mechanisms

23 Pages Posted: 17 Dec 2004 Last revised: 28 Oct 2007

Date Written: September 2007

Abstract

In this note we show that the equilibrium characterized by Biais, Martimort and Rochet (Econometrica, 2000) could have been characterized by direct mechanisms even if the Revelation Principle does not apply in their setting. The use of more sophisticated mechanisms, such as menus, was not necessary.

Keywords: Common Agency, Revelation Principle, Direct Mechanisms, Nonlinear Prices

JEL Classification: D82

Suggested Citation

Piaser, Gwenael, The Biais-Martimort-Rochet Equilibrium With Direct Mechanisms (September 2007). University Ca' Foscari of Venice, Dept. of Economics Research Paper Series No. 33/06, Available at SSRN: https://ssrn.com/abstract=633121 or http://dx.doi.org/10.2139/ssrn.633121

Gwenael Piaser (Contact Author)

Universite du Luxembourg ( email )

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