On take it or leave it offers in common agency

Abstract

If the agent's preference relation satisfies a strict monotonicity condition in common agency under the asymmetric information, the set of all equilibrium allocations in the menu game where menus of contracts are allowed coincides with the set of all equilibrium allocations in the single contract game where only single contracts are allowed. * This paper supersedes the paper "Competition relative to Incentive Contracts in Common Agency." It is based on my research during the sabbatical visit to Boston University. I thank their hospitality. I also thank seminar audience at Boston University and University of Western Ontario for their comments. I thankfully acknowledge financial support from SSHRC of Canada.