We investigate the adverse selection problem where a principal delegates multiple
tasks to an agent. We characterize the virtually implementable social choice functions
by using the linking mechanism proposed by Jackson and Sonnenschein (2007) that
restricts the message spaces. The principal does not require any incentive wage schemes
and can therefore avoid any information rent and welfare loss. We show the
resemblance between the functioning of this message space restriction and that of
incentive wage schemes. We also extend the results of the single-agent model to the
multi-agent model.
|