prices by introducing delegation into a standard Lucas exchange economy. In equilibrium, some investors trade on their own …

distortion, such as delegation and choosing to be less informed. …

delegation, and provide novel microfoundations for the make-or-buy decision. We outline precise conditions under which giving up …

We explore the optimal delegation of decision rights by a principal to a better informed but biased agent. In an … world. We characterize the optimal delegation schemes for all discount rates and show that they resemble organizational … arrangements that are commonly observed, including centralization and threshold delegation. For small biases threshold delegation …

, the extent of delegation and equilibrium prices are all determined endogenously within the model we consider. Symmetric …

Why do firms delegate job design decisions to workers, and what are the implications of such delegation? We develop a … private-information based theory of delegation, where delegation enables high-ability workers to signal their ability by … delegation: when market observability of job content is high, the compensation needed to get low ability workers to self-sort is …

Delegation to independent bodies whose preference can be different from those of the government has been shown to have … delegation in the context of a cost-reimbursement procurement problem. Our solution combines several features of the modern … heterogeneity across regulators available. We find that delegation to an independent industry regulator, whose preferences are more …