-making authority to appoint successor managers on the quality of managers actually appointed. Our main result is that a greater … centralization results in a greater variability over time in the quality of managers. An intuitive reason for this is that though a …

We argue here for a broader view of the biases in managers' decisions: In general, managerial rent-seeking affects not … managerial discretion, managers have an incentive to exercise that discretion to enhance their income. Any managerial contract is …