Existence of solutions to principal–agent problems with adverse selection under minimal assumptions
Résumé
We prove an existence result for the principal-agent problem with adverse selection under general assumptions on preferences and allo-cation spaces. Instead of assuming that the allocation space is finite-dimensional or compact, we consider a more general coercivity condi-tion which takes into account the principal’s cost and the agents’ pref-erences. Our existence proof is simple and flexible enough to adapt to partial participation models as well as to the case of type-dependent budget constraints.
Origine | Fichiers produits par l'(les) auteur(s) |
---|