Implementation of optimal contracts under adverse selection

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The authors analyse a 2-agent, 2-type principal-multiagent model of adverse selection under the assumption that the agents each have complete information. The aim of this paper is to find natural mechanisms associated with the new principal-multiagents model introduced. More specifically, the authors have considered for this model five important issues: ``individual rationality, ``renegotiation-proofness, ``finite mechanism, ``unique implemetation and ``undomination of Nash Equilibria.











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