Equilibrium (non-)existence in games with competing principals

Résumé

We study competing-mechanism games, in which multiple principals contract with multiple agents. We reconsider the issue of non-existence of an equilibrium as first raised by Myerson (1982). In the context of his example, we establish the existence of a perfect Bayesian equilibrium. We clarify that Myerson (1982)’s non-existence result is an implication of the additional requirement he imposes, that each principal selects his preferred continuation equilibrium in the agents’ game.

Référence

Andrea Attar, Eloisa Campioni et Gwenaël Piaser, « Equilibrium (non-)existence in games with competing principals », Economics Letters, vol. 222, n° 110932, janvier 2023.