INDENTURING BANKNOTES AS A MECHANISM TO INDUCE COOPERATION IN CONFLICT GAMES

Authors
KRITIKOS AS BOLLE F
Citation
As. Kritikos et F. Bolle, INDENTURING BANKNOTES AS A MECHANISM TO INDUCE COOPERATION IN CONFLICT GAMES, Journal of economic behavior & organization, 34(2), 1998, pp. 279-294
Citations number
20
Categorie Soggetti
Economics
Journal title
Journal of economic behavior & organization → ACNP
ISSN journal
01672681
Volume
34
Issue
2
Year of publication
1998
Pages
279 - 294
Database
ISI
SICI code
0167-2681(1998)34:2<279:IBAAMT>2.0.ZU;2-N
Abstract
A principal wants an agent to do something for him, but does not want to pay him. The agent wants to get the money, but does not want to wor k for it. How can the socially efficient result of working and paying be achieved if no enforceable contract can be concluded and the game i s played only once? A class of one-shot-games (Indenture Games) is ana lyzed where efficient behaviour is the unique stable equilibrium. (C) 1998 Elsevier Science B.V.