Gottardi, Piero; Tallon, Jean Marc; Ghirardato, Paolo - CESifo - 2010
rigid, non discretionary contracts. Delegation grants some flexibility in the choice of the action by the agent, but also … play then an important role in determining the costs of delegation. The main focus of the paper lies indeed in the analysis … of these costs and the consequences for whether or not delegation is optimal.We determine and characterize the properties …