Group targeting under networked synergies

Mohamed Belhaj (1) , Frédéric Deroïan (1)

1 AMSE - Aix-Marseille Sciences Economiques

A principal targets agents organized in a network of local complementarities, in order to increase the sum of agents' effort. We consider bilateral public contracts à la Segal (1999). The paper shows that the synergies between contracting and non-contracting agents deeply impact optimal contracts: they can lead the principal to contract with a subset of the agents, and to refrain from contracting with central agents.

Mots clés: Optimal group targeting; Aggregate effort; Network; Synergies

Domaines: Economies et finances

Mohamed Belhaj, Frédéric Deroïan. Group targeting under networked synergies. Games and Economic Behavior, 2019, 118, pp.29-46. ⟨10.1016/j.geb.2019.08.003⟩. ⟨hal-02452272⟩