Endogenous games and mechanisms: side payments among players

Matthew O. Jackson, Simon Wilkie

Research output: Contribution to journalArticleResearchpeer-review

60 Citations (Scopus)

Abstract

We characterize the outcomes of games when players may make binding offers of strategy contingent side payments before the game is played. This does not always lead to efficient outcomes, despite complete information and costless contracting. The characterizations are illustrated in a series of examples, including voluntary contribution public good games, Cournot and Bertrand oligopoly, principal-agent problems, and commons games, among others.

Original languageEnglish
Pages (from-to)543-566
Number of pages24
JournalReview of Economic Studies
Volume72
Issue number2
DOIs
Publication statusPublished - Apr 2005
Externally publishedYes

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