Abstract

In this note we extend the Amador and Bagwell (Econometrica 81:1541–1599, 2013) conditions for confirming the optimality of a proposed interval delegation set to the possibility of degenerate intervals, in which the agent takes the same action at every state. We consider the cases of money burning as well as no money burning. These results allow us to provide new sufficient conditions on utility functions and state distributions to guarantee that some interval—degenerate or non-degenerate—will be optimal.

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