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Group Targeting under Networked Synergies

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Working paper
Author/s: 
Mohamed Belhaj, Frédéric Deroïan
Issue number: 
2018.12
Series: 
AMSE Working Papers
Publisher: 
Aix-Marseille School of Economics
Year: 
2018
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 `a 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.
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