Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/222139 
Year of Publication: 
2020
Series/Report no.: 
Discussion Paper No. 242
Publisher: 
Ludwig-Maximilians-Universität München und Humboldt-Universität zu Berlin, Collaborative Research Center Transregio 190 - Rationality and Competition, München und Berlin
Abstract: 
We consider a general framework of optimal mechanism design under adverse selection and ambiguity about the type distribution of agents. We prove the existence of optimal mechanisms under minimal assumptions on the contract space and prove that centralized contracting implemented via mechanisms is equivalent to delegated contracting implemented via a contract menu under these assumptions. Our abstract existence results are applied to a series of applications that include models of optimal risk sharing and of optimal portfolio delegation.
Subjects: 
robust contracts
nonmetrizable contract spaces
ambiguity
financial markets
JEL: 
C02
D82
Document Type: 
Working Paper

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