But who will monitor the monitor?

David M. Rahman

doi:10.1145/1566374.1566397

But who will monitor the monitor?

David M. Rahman

Economics (Twin Cities)

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

Abstract

Consider a group of individuals whose behavior is subject to moral hazard, and suppose that providing them with incentives requires a monitor to detect deviations. What about the monitor's deviations? I study mediated contracts and find that the monitor's deviations are effectively irrelevant. Hence, nobody needs to monitor the monitor. I also characterize exactly when such contracts can provide the right incentives for everyone. In doing so, several new characterizations of virtual implementation are derived.

Original language	English (US)
Title of host publication	EC'09 - Proceedings of the 2009 ACM Conference on Electronic Commerce
Pages	157
Number of pages	1
DOIs	https://doi.org/10.1145/1566374.1566397
State	Published - 2009
Event	2009 ACM Conference on Electronic Commerce, EC'09 - Stanford, CA, United States Duration: Jul 6 2009 → Jul 10 2009

Publication series

Name	Proceedings of the ACM Conference on Electronic Commerce

Other

Other	2009 ACM Conference on Electronic Commerce, EC'09
Country/Territory	United States
City	Stanford, CA
Period	7/6/09 → 7/10/09

Keywords

Mediated contracts
Monitoring
Virtual implementation

Access

10.1145/1566374.1566397

OpenUrl availability

Full text

Cite this

@inproceedings{25ddfb94238142d78ae661032ac60a38,

title = "But who will monitor the monitor?",

abstract = "Consider a group of individuals whose behavior is subject to moral hazard, and suppose that providing them with incentives requires a monitor to detect deviations. What about the monitor's deviations? I study mediated contracts and find that the monitor's deviations are effectively irrelevant. Hence, nobody needs to monitor the monitor. I also characterize exactly when such contracts can provide the right incentives for everyone. In doing so, several new characterizations of virtual implementation are derived.",

keywords = "Mediated contracts, Monitoring, Virtual implementation",

author = "Rahman, {David M.}",

year = "2009",

doi = "10.1145/1566374.1566397",

language = "English (US)",

isbn = "9781605584584",

series = "Proceedings of the ACM Conference on Electronic Commerce",

pages = "157",

booktitle = "EC'09 - Proceedings of the 2009 ACM Conference on Electronic Commerce",

note = "2009 ACM Conference on Electronic Commerce, EC'09 ; Conference date: 06-07-2009 Through 10-07-2009",