collusion and capture between middle managers and line workers; provided that this detrimental form of collusion takes place in … of a collusive agreement a party has to incur to walk away from such a side deal. Delegation is then a simple way for the …

prices by introducing delegation into a standard Lucas exchange economy. In equilibrium, some investors trade on their own … account, but others decide to delegate trading to professional fund managers. Flow performance incentive functions describe … is high, funds with identical incentives employ heterogeneous trading strategies. A group of managers borrows to take on …

compensation of fund managers to the excess return of the managed portfolio over a benchmark portfolio. The contract parameters …, 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 …

We analyse the optimal delegation of decision rights by a uninformed principal to an informed but biased agent. When … his preferred one. We fully characterize the optimal delegation set for general distributions of the state space and … delegation sets to be optimal. Finally, we show that the optimal delegation set takes the form of a single interval if the agent …

This paper shows that delegation of monetary policy to a weight-conservative central banker is optimal, although the … stochastic inflation bias cannot be eliminated by optimal choice of the delegation parameters. …