A prisoner's dilemma model of collusion deterrence

摘要: Abstract We examine a hierarchy formed by principal, supervisor and an agent, wherein the agent can collude. consider case where collusion-free supervisors are not available. demonstrate first that it is easy for principal to deter collusion introducing second designing mechanism similar prisoner's dilemma so two control each other. Since could prove too costly send supervisors, new question arises: whether would be possible sending with probability less than one. find under reasonable assumptions on size of rewards punishments, prevent only ‘creating’ type through sometimes informing his position.