Economics, Econometrics and Finance
4 years ago

New model reveals key to efficient decision-making in group settings

Journal of Economic Theory
Dynamic common agency
Dirk Bergemann, Juuso Välimäki

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The article discusses a model of common agency with symmetric information. It looks at equilibrium payoffs and efficiency in the game. The uniqueness of equilibrium payoffs is determined based on each principal's contribution to the game's social value. The study applies this model to a game of agenda setting.