Cover of: Group Contracting and Enforcement
Jean-Jacques Laffont, Tchétché N'Guessan

Group Contracting and Enforcement

Section: Articles
Volume 157 (2001) / Issue 4, pp. 487-498 (12)
Published 09.07.2018
DOI 10.1628/0932456012974549
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Summary
We consider a principal-multiagent framework with adverse selection when contracting is possible ex ante. However, enforcement of contracts is imperfect, which results in inefficiencies. We study how group contracting may or may not mitigate those inefficiencies.