  This paper studies a class of incentive schemes based on intervention, where
there exists an intervention device that is able to monitor the actions of
users and to take an action that affects the payoffs of users. We consider the
case of perfect monitoring, where the intervention device can immediately
observe the actions of users without errors. We also assume that there exist
actions of the intervention device that are most and least preferred by all the
users and the intervention device, regardless of the actions of users. We
derive analytical results about the outcomes achievable with intervention, and
illustrate our results with an example based on the Cournot model.
