Title:
|
Decentralization of contracts with interim sidecontracting
|
Author:
|
Theilen, Bernd, 1965-
|
Other authors:
|
Universitat Rovira i Virgili. Departament d'Economia; Universitat Rovira i Virgili. Centre de Recerca en Economia Industrial i Economia Pública |
Resum:
|
This paper gives a new explanation for the phenomena of subcontracting. A model
in which a principal contracts two agents who work in a sequence on a project, have soft
information and can collude is considered. Side-contracts between agents can be signed
at any stage of the game. Due to limited liability and moral hazard agents obtain a rent.
The principal’s problem is to find the preferable contracting structure. It is shown that in
this setting a decentralized contracting structure can be superior to a centralized structure
for the principal. The paper derives the conditions under which this holds.
Journal of Economic Literature Classification Numbers: D23, D82, L14, L22.
Keywords: Contract delegation, Collusion, Interim side-contracting, Moral hazard. |
Publication date:
|
2011 |
Subject (UDC):
|
33 - Economia |
Subject(s):
|
Subcontractació |
Rights:
|
Aquest document està subjecte a una llicència d'ús de Creative Commons, amb la qual es permet copiar, distribuir i comunicar públicament l'obra sempre que se'n citin l'autor original, la universitat i el departament i no se'n faci cap ús comercial ni obra derivada, tal com queda estipulat en la llicència d'ús (http://creativecommons.org/licenses/by-nc-nd/2.5/es/) |
Document type:
|
Working Paper |
ISSN:
|
1988 - 0812
|
Collection:
|
Documents de treball del Departament d'Economia;2011-15
|
Share:
|
|