Sequential communication with ex post participation constraints

This paper examines an informed principal-agent game with ex post participation constraints for the agent. It shows that the players do not loss by communicating in turn among themselves rather than simultaneously if and only if the principal communicates first. It then considers any Bayesian allocation rule implemented in this bilateral asymmetric information framework. It provides necessary and sufficient conditions for sequential communication to be as efficient than simultaneous communication in implementing Bayesian allocation rules when the player with unbounded payoffs moves first.