The principal's dilemma

An extensive form solution to the adverse selection problem in principal / multi - agent environments *

When agents have quasi-linear preferences, every incentive compati-ble social choice function can be implemented by a simple extensive form mech-anism, even if agents are allowed to use mixed strategies. The second stage of themechanism, which is used to elicit the agents' true preferences, is not reached inequilibrium; it gives agents strict dominant strategies, so equilibrium ...

Context Authentication Using Constrained Channels

This paper presents a paradigm shift from conventional authenticationof a principal's identityto authentication of parameters that characterise a principal's context. Location, in particular, is a highly significant contextual parameter. It is one that features in what are known as mobile, ubiquitous, pervasive and nomadic computing systems. We present a model of context authentication based ...

Technical Appendix to Accompany “ Implementing High - Powered Contracts to Motivate Intertemporal Effort Supply

Recall from section 2 in the text that the principal's problem [P ] is to: M aximize r(·), e 1 (·), ··· , en(·)

on the dilemma of moraliti:self-interest and altruism

The dilemma of Rationality or Providing Efficiency in Monetary Policy Making: An Application of Arrow’s

Financial frictions inducted in the model is a new contribution to monetary economics. Herein, an analytical tool arranges monetary policymaking in the form of two steps procedure. In the first step, an appropriate amount of money supply should be assessed; and in the second step, that appropriate amount should be allocated to several sectors. The Central Bank obligates the step of assessment a...