Working Paper
The Principal-Agent Matching Market
Kaniska Dam
CESifo, Munich, 2003
CESifo Working Paper No. 945
CESifo, Munich, 2003
CESifo Working Paper No. 945
![](https://cesifo.org/DocImg/cesifo_wp945.jpg?c=1689237009)
We propose a model based on competitive markets in order to analyse an economy with several principals and agents. We model the principal-agent economy as a two-sided matching game and characterise the set of stable outcomes of this principal-agent matching market. A simple mechanism to implement the set of stable outcomes is proposed. Finally, we put forward examples of principal-agent economies where the results fit.
Keywords: principal-agent, moral hazard, matching, implementation