Keywords: VCG; Principal; Common Agent; Contract; Equilibrium; Limited Liability; Individ-

ual Rationality; Polynomial Complexity

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Technion – Israel Institute of Technology. Email: alontal@campus.technion.ac.il.
U. of Bath, U.K., and Technion – Israel Institute of Technology. Email: ronlavi@ie.technion.ac.il.
Technion – Israel Institute of Technology. Email: elisheva@campus.technion.ac.il.
Technion – Israel Institute of Technology. Email: inbaltalgam@gmail.com.

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Introduction

Common agency. The principal-agent model is a fundamental area of microeconomic theory,

capturing natural contractual relations with important practical implications [5, 21, 29, 28]. At

the heart of the model is a relationship between one entity (agent) who acts on behalf of another

(principal); for example, corporate management and shareholders, a freelance worker and employers,
Incomplete Information VCG Contracts for Common Agency