Endogenous formation of competing partnerships with moral hazard

• 成果类型: Article; Proceedings Paper
• 署名作者: Espinosa, MP; Macho-Stadler, I
• 署名单位: Autonomous University of Barcelona; Autonomous University of Barcelona; University of Basque Country
• 刊物名称: GAMES AND ECONOMIC BEHAVIOR
• ISSN/ISSBN: 0899-8256
• DOI: 10.1016/S0899-8256(03)00019-8
• 发表日期: 2003
• 页码: 172-183
• 关键词: Endogenous coalition formation; moral hazard; partnerships

摘要

We analyze the formation of competing partnerships as a sequential game with moral hazard within coalitions. In a linear Cournot model, we show that when moral hazard is very severe, no partnerships will form. However, when moral hazard is not too severe, the coalition structure may be more concentrated than it is in the absence of moral hazard. Concerning industry profits, in the absence of moral hazard too many coalitions are formed in equilibrium as compared to the efficient outcome, but moral hazard may be responsible for an inefficiency of opposite sign. (C) 2003 Elsevier Science (USA). All rights reserved.