@techreport{NBERt0035,
 title = "Misperceptions, Moral Hazard, and Incentives in Groups",
 author = "Martin Gaynor",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Technical Working Paper Series",
 number = "35",
 year = "1987",
 month = "May",
 URL = "http://www.nber.org/papers/t0035",
 abstract = {Recent work has shown that, in the presence of moral hazard, balanced budget Nash equilibria in groups are not pareto-optimal. This work shows that when agents misperceive the effects of their actions on the joint outcome, there exist a set of sharing rules which balance the budget and lead to a pareto-optimal Nash equilibria.},
}