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Monitoring Cooperative Agreements in a Repeated Principal-Agent Relationship

Open access
Radner, Roy·1981·Econometrica

Abstract

The situation in which a principal-agent relationship is repeated finitely many times (T) is formulated as a sequential game.For any Pareto-optimal cooperative arrangement in the one-period game that dominates a one-period Nash equilibrium, and any positive number epsilon, there exists for every sufficiently large T a (noncooperative) epsilon equilibrium of the T-period game that yields each player an average expected utility that is at least his expected utility in the one-period cooperative arrangement, less epsilon. 'This is a revision and extension of "Monitoring Cooperative Agreements between Principals and Agents," Tech. Report No. 3, Center on Decision and Conflict in Complex Organizations, Harvard University,

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Metadata

Authors
Radner, R.
Venue
Econometrica
Publisher
JSTOR
Published
1981-09
Volume
49
Issue
5
Pages
1127
ISSN
0012-9682 (ISSN-L)
OpenAlex
W2165408566
Cited by
405
References
0
FWCI
18.03
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: Monitoring Cooperative Agreements in a Repeated Principal-Agent Relationship. https://app.cochat.ai/papers/10.2307/1912747
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Radner, R. (1981). Monitoring Cooperative Agreements in a Repeated Principal-Agent Relationship. Econometrica. https://doi.org/10.2307/1912747

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