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.

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Référence

Andrea Attar, Eloisa Campioni et Gwenaël Piaser, « Equilibrium (non-)Existence in Games with Competing Principals », TSE Working Paper, n° 22-1364, septembre 2022.