Edited by David Martimort, Professor, Paris School of Economics and Research Director, École des Hautes Études en Sciences Sociales (EHESS), France

• Contents:Introduction David MartimortPART ICOLLECTIVE DECISION PROBLEMS UNDER ASYMMETRIC INFORMATION A. Public Goods and the Free Riding Problem1. Claude d’Aspremont and Louis-André Gérard-Varet (1979), ‘Incentives and Incomplete Information’, Journal of Public Economics, 11 (1), February, 25–452. Jerry Green and Jean-Jacques Laffont (1977), ’Characterization of Satisfactory Mechanisms for the Revelation of Preferences for Public Goods’, Econometrica, 45 (2), March, 427–383. Theodore Groves (1973), ‘Incentives in Teams’, Econometrica, 41 (4), July, 617–31 4. Jean-Jacques Laffont and Eric Maskin (1979), ‘A Differential Approach to Expected Utility Maximizing Mechanisms’, in Jean-Jacques Laffont (ed.), Aggregation and Revelation of Preferences: Studies in Public Economics Volume 2, Part IV, Chapter 16, Amsterdam, the Netherlands, New York, NY, USA and Oxford, UK: North-Holland Publishing Company, 289–308 5. Jean-Jacques Laffont and Eric Maskin (1980), ‘A Differential Approach to Dominant Strategy Mechanisms’, Econometrica, 48 (6), September, 1507–206. George J. Mailath and Andrew Postlewaite (1990), ‘Asymmetric Information Bargaining Problems with Many Agents’, Review of Economic Studies, 57 (3), July, 351–67 B. Incentive Compatibility and the Revelation Principle7. Allan Gibbard (1973), ‘Manipulation of Voting Schemes: A General Result’, Econometrica, 41 (4), July, 587–6018. Partha Dasgupta, Peter Hammond and Eric Maskin (1979), ‘The Implementation of Social Choice Rules: Some General Results on Incentive Compatibility’, Review of Economic Studies, 46 (2), April, 185–2169. Roger B. Myerson (1979), ‘Incentive Compatibility and the Bargaining Problem’, Econometrica, 47 (1), January, 61–7310. Roger B. Myerson (1982), ‘Optimal Coordination Mechanisms in Generalized Principal-Agent Problems’, Journal of Mathematical Economics, 10 (1), June, 67–81C. Full Implementation11. Joel S. Demski and David Sappington (1984), ‘Optimal Incentive Contracts with Multiple Agents’, Journal of Economic Theory, 33 (1), June 152–7112. Eric Maskin (1999), ‘Nash Equilibrium and Welfare Optimality’, Review of Economic Studies, Special Issue: Contracts, 66 (1), January, 23–3813. Eric Maskin and John Moore (1999), ‘Implementation and Renegotiation’, Review of Economic Studies, Special Issue: Contracts, 66 (1), January, 39–5614. John Moore and Rafael Repullo (1988), ‘Subgame Perfect Implementation’, Econometrica, 56 (5), September, 1191–122015. John Moore and Rafael Repullo (1990), ‘Nash Implementation: A Full Characterization’, Econometrica, 58 (5), September, 1083–9916. Thomas R. Palfrey and Sanjay Srivastava (1989), ‘Implementation with Incomplete Information in Exchange Economies’, Econometrica, 57 (1), January, 115–34 17. Dilip Mookherjee and Stefan Reichelstein (1990), ‘Implementation via Augmented Revelation Mechanisms’, Review of Economic Studies, 57 (3), July, 453–75 D. Interim Efficiency18. Bengt Holmström and Roger B. Myerson (1983), ‘Efficient and Durable Decision Rules with Incomplete Information’, Econometrica, 51 (6), November, 1799–181919. John O. Ledyard and Thomas R. Palfrey (1999), ‘A Characterization of Interim Efficiency with Public Goods’, Econometrica, 67 (2), March, 435–48E. Auctions20. Jacques Crémer and Richard P. McLean (1988), ‘Full Extraction of the Surplus in Bayesian and Dominant Strategy Auctions’, Econometrica, 56 (6), November, 1247–5721. Philippe Jehiel and Benny Moldovanu (2001), ‘Efficient Design with Interdependent Valuations’, Econometrica, 69 (5), September, 1237–5922. Eric Maskin and John Riley (1989), ‘Optimal Multi-unit Auctions’, in Frank Hahn (ed.), The Economics of Missing Markets, Information, and Games, Chapter 14, Oxford, UK: Clarendon Press, 312–3523. Roger B. Myerson (1981), ‘Optimal Auction Design’, Mathematics of Operations Research, 6 (1), February, 58–7324. John G. Riley and William F. Samuelson (1981), ‘Optimal Auctions’, American Economic Review, 71 (3), June, 381–92F. Robust Mechanism Design25. Dirk Bergemann and Stephen Morris (2005), ‘Robust Mechanism Design’, Econometrica, 73 (6), November, 1771–181326. Philippe Jehiel, Moritz Meyer-ter-Vehn, Benny Moldovanu and William R. Zame (2006), ‘The Limits of Ex Post Implementation’, Econometrica, 74 (3), May, 585–61027. Dilip Mookherjee and Stefan Reichelstein (1992), ‘Dominant Strategy Implementation of Bayesian Incentive Compatible Allocation Rules’, Journal of Economic Theory, 56 (2), April, 378–9928. Zvika Neeman (2004), ‘The Relevance of Private Information in Mechanism Design’, Journal of Economic Theory, 117 (1), July, 55–7729. Robert Wilson (1987), ‘Game-Theoretic Analyses of Trading Processes’, in Truman F. Bewley (ed.), Advances in Economic Theory: Fifth World Congress, Chapter 2, Cambridge, UK, New York, NY, USA and Melbourne, Australia: Cambridge University Press, 33–70G. The Coase Theorem under Asymmetric Information: Scope and Value30. Roger B. Myerson and Mark A. Satterthwaite (1983), ‘Efficient Mechanisms for Bilateral Trading’, Journal of Economic Theory, 29 (2), April, 265–8131. Peter Cramton, Robert Gibbons and Paul Klemperer (1987), ‘Dissolving a Partnership Efficiently’, Econometrica, 55 (3), May, 615–32, 1493 (Erratum)32. Steven R. Williams (1999), ‘A Characterization of Efficient, Bayesian Incentive Compatible Mechanisms’, Economic Theory, 14 (1), July, 155–8PART II COLLECTIVE DECISION PROBLEMS UNDER MORAL HAZARD A. Moral Hazard in Teams33. Bengt Holmström (1982), ‘Moral Hazard in Teams’, Bell Journal of Economics, 13 (2), Autumn, 324–4034. Patrick Legros and Steven A. Matthews (1993), ‘Efficient and Nearly-Efficient Partnerships’, Review of Economic Studies, 60 (3), July, 599–61135. Eric Rasmusen (1987), ‘Moral Hazard in Risk-Averse Teams’, RAND Journal of Economics, 18 (3), Autumn, 428–3536. David Rahman (2012), ‘But Who Will Monitor the Monitor?’, American Economic Review, 102 (6), October, 2767–97B. The Firm as a Hierarchy: Relative or Joint Performance Evaluations?37. Yeon-Koo Che and Seung-Weon Yoo (2001), ‘Optimal Incentives for Teams’, American Economic Review, 91 (3), June, 525–4138. Edward P. Lazear and Sherwin Rosen (1981), ‘Rank-Order Tournaments as Optimum Labor Contracts’, Journal of Political Economy, 89 (5), October, 841–6439. Hideshi Itoh (1991), ‘Incentives to Help in Multi-Agent Situations’, Econometrica, 59 (3), May, 611–3640. Dilip Mookherjee (1984), ‘Optimal Incentive Schemes with Many Agents’, Review of Economic Studies, LI (3), July, 433–4641. Barry J. Nalebuff and Joseph E. Stiglitz (1983), ‘Prizes and Incentives: Towards a General Theory of Compensation and Competition’, Bell Journal of Economics, 14 (1), Spring, 21–4342. Ching-To Ma (1988), ‘Unique Implementation of Incentive Contracts with Many Agents’, Review of Economic Studies, LV (4), October, 555–71Volume II Contents:Introduction An introduction by the editor appears in Volume IPART I COLLECTIVE DECISION PROBLEMS: INCOMPLETE CONTRACTING AND THE NON-VERIFIABILITY PARADIGM A. Property Rights, Authority and Capital Structure1. Philippe Aghion and Patrick Bolton (1992), ‘An Incomplete Contracts Approach to Financial Contracting’, Review of Economic Studies, 59 (3), July, 473–942. Philippe Aghion and Jean Tirole (1997), ‘Formal and Real Authority in Organizations’, Journal of Political Economy, 105 (1), February, 1–293. Aaron S. Edlin and Stefan Reichelstein (1996), ‘Holdups, Standard Breach Remedies, and Optimal Investment’, American Economic Review, 86 (3), June, 478–5014. Mathias Dewatripont and Jean Tirole (1994), ‘A Theory of Debt and Equity: Diversity of Securities and Manager-Shareholder Congruence’, Quarterly Journal of Economics, 109 (4), November, 1027–545. Sanford J. Grossman and Oliver D. Hart (1986), ‘The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration’, Journal of Political Economy, 94 (4), August, 691–7196. Oliver Hart and John Moore (1990), ‘Property Rights and the Nature of the Firm’, Journal of Political Economy, 98 (6), December, 1119–58[40]7. Jean Tirole (1986), ‘Procurement and Renegotiation’, Journal of Political Economy, 94 (2), April, 235–59B. The Foundations of Incomplete Contracts8. Ilya Segal (1999), ‘Complexity and Renegotiation: A Foundation for Incomplete Contracts’, Review of Economic Studies, Special Issue: Contracts, 66 (1), January, 57–82 9. Eric Maskin and Jean Tirole (1999), ‘Unforeseen Contingencies and Incomplete Contracts’, Review of Economic Studies, Special Issue: Contracts, 66 (1), January, 83–114C. Relational Contracts and Subjective Evaluations10. Jonathan Levin (2003), ‘Relational Incentive Contracts’, American Economic Review, 93 (3), June, 835–57 11. W. Bentley MacLeod and James M. Malcomson (1989), ‘Implicit Contracts, Incentive Compatibility, and Involuntary Unemployment’, Econometrica, 57 (2), March, 447–80 12. W. Bentley MacLeod (2003), ‘Optimal Contracting with Subjective Evaluation’, American Economic Review, 93 (1), March, 216–40PART II COLLECTIVE DECISION PROBLEMS: THE MULTI-CONTRACTING ORGANIZATION A. Collusion: When Agents Share Information and Coordinate Actions13. Hideshi Itoh (1993), ‘Coalitions, Incentives, and Risk Sharing’, Journal of Economic Theory, 60 (2), August, 410–27 14. Jean-Jacques Laffont and David Martimort (1999), ‘Separation of Regulators against Collusive Behavior’, RAND Journal of Economics, 30 (2), Summer, 232–6215. Jean-Jacques Laffont and Jean Tirole (1991), ‘The Politics of Government Decision-Making: A Theory of Regulatory Capture’, Quarterly Journal of Economics, 106 (4), November, 1089–1127 16. Jean Tirole (1986), ‘Hierarchies and Bureaucracies: On the Role of Collusion in Organizations’, Journal of Law, Economics, and Organization, 2 (2), Fall, 181–214 17. Hal R. Varian (1990), ‘Monitoring Agents With Other Agents’, Journal of Institutional and Theoretical Economics, 146 (1), March, 153–74 B. Collusion with Asymmetric and Soft Information18. Yeon-Koo Che and Jinwoo Kim (2006), ‘Robustly Collusion-Proof Implementation’, Econometrica, 74 (4), July, 1063–1107 19. Jean-Jacques Laffont and David Martimort (1997), ‘Collusion under Asymmetric Information’, Econometrica, 65 (4), July, 875–911 C. Hierarchies and Decentralization20. Sandeep Baliga and Tomas Sjöström (1998), ‘Decentralization and Collusion’, Journal of Economic Theory, 83 (2), December, 196–23221. David P. Baron and David Besanko (1992), ‘Information, Control, and Organizational Structure’, Journal of Economics and Management Strategy, 1 (2), Summer, 237–7522. Jean-Jacques Laffont and David Martimort (1998), ‘Collusion and Delegation’, RAND Journal of Economics, 29 (2), Summer, 280–305 23. Nahum D. Melumad, Dilip Mookherjee and Stefan Reichelstein (1995), ‘Hierarchical Decentralization of Incentive Contracts’, RAND Journal of Economics: Symposium on the Economics of Organization, 26 (4), Winter, 654–72 24. Dilip Mookherjee and Masatoshi Tsumagari (2004), ‘The Organization of Supplier Networks: Effects of Delegation and Intermediation’, Econometrica, 72 (4), July, 1179–1219 D. Multilateral Contracting and Common Agency25. B. Douglas Bernheim and Michael D. Whinston (1986), ‘Menu Auctions, Resource Allocation, and Economic Influence’, Quarterly Journal of Economics, CI (1), February, 1–3126. B. Douglas Bernheim and Michael D. Whinston (1986), ‘Common Agency’, Econometrica, 54 (4), July, 923–4227. David Martimort and Lars Stole (2002), ‘The Revelation and Delegation Principles in Common Agency Games’, Econometrica, 70 (4), July, 1659–73 28. David Martimort and Lars Stole (2009), ‘Market Participation in Delegated and Intrinsic Common-Agency Games’, RAND Journal of Economics, 40 (1), Spring, 78–102 29. Ilya Segal (1999), ‘Contracting with Externalities’, Quarterly Journal of Economics, CXIV (2), May, 337–88 E. Endogenous Common Agency30. B. Douglas Bernheim and Michael D. Whinston (1998), ‘Exclusive Dealing’, Journal of Political Economy, 106 (1), February, 64–10331. David Martimort (1996), ‘Exclusive Dealing, Common Agency, and Multiprincipals Incentive Theory’, RAND Journal of Economics, 27 (1), Spring, 1–31Index