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The Value of Public Information in Monopoly

Econometrica 2001 69(6), 1673-1683 open access
The logic of the linkage principle of Milgrom and Weber (1982) extends to price discrimination. A non-linear pricing monopolist who sells to a single buyer always prefers to commit to publicly reveal information affiliated to the valuation of the buyer. This is also valid when the value of the buyer affects the opportunity cost of the seller.

Games Played Through Agents

Econometrica 2003 71(4), 989-1026 open access
We introduce a game of complete information with multiple principals and multiple common agents. Each agent makes a decision that can affect the payoffs of all principals. Each principal offers monetary transfers to each agent conditional on the action taken by the agent. We characterize pure-strategy equilibria and we provide conditions—in terms of game balancedness—for the existence of an equilibrium with an efficient outcome. Games played through agents display a type of strategic inefficiency that is absent when either there is a unique principal or there is a unique agent.