Implementation in principal-agent models of adverse selection

This paper studies implementation in a principal agent model of adverse sel ection. We explore ways in which the additional structure of principal agen t models (compared to general implementation models) simplifies the impleme ntation problem. We develop a connection between the single crossing proper ty and monotonicity conditions which are necessary for Nash and Bayesian Na sh implementation. We also construct simple implementing mechanisms that re ly on the single crossing property and on assumptions about the outcome set frequently made in the principal-agent literature. Journal of Economic Lit erature Classification Numbers: C71, D82. (C) 2000 Academic Press.