Puschke, Kerstin - In: Journal of Institutional and Theoretical Economics (JITE) 163 (2007) 3, pp. 394-410
Authority is modeled as the right to undertake a noncontractible decision in a joint project. The decision-maker is assumed to exert an externality on the other parties; overall surplus is shared according to generalized Nash bargaining. Under limited liability, the agent whose marginal costs...