Coordination and bargaining power in contracting with externalities

  title={Coordination and bargaining power in contracting with externalities},
  author={Alberto Galasso},
  journal={J. Economic Theory},
Building on Genicot and Ray (2006) we develop a model on non-cooperative bargaining that combines the two main approaches in the literature of contracting with externalities: the o¤er game (in which the principal makes simultaneous o¤ers to the agents) and the bidding game (in which the agents make simultaneous o¤ers to the principal). Allowing for agent… CONTINUE READING