We analyze an adverse selection environment with third party supervision. We assume that the supervisor and the agent can collude while interacting with the principal. As long as the supervisor is symmetrically informed with the agent, the former’s existence does not improve the principal’s rent extraction. This is due to the coalitional efficiency between the supervisor and the agent. However,...

Graduation Committee Chair Dr. ir. V.A.W.J. (Vincent) Marchau – Delft University of Technology, section Transport and Logistics Supervisor Dr. J.A. (Jan Anne) Annema – Delft University of Technology, section Transport and Logistics Supervisor Dr. ir. Z. (Zofia) Lukszo – Delft University of Technology, section Energy and Industry Supervisor C. (Carijn) Grassi-Manders – Schiphol Group, theGROUNDS...