two two-tier hierarchies, the principal designs contracts for both agents. In delegation with a three-tier hierarchy, the …-a-vis centralization, document comparative statics results regarding the benefits of delegation and the distribution of total surplus, and … discuss when delegation is more likely to dominate centralization …

outside evaluator cannot observe the allocation of authority. Hence, delegation can provide a way to manipulate the principal …'s ex post reputation. In general, the principal keeps the authority too often when she has the opportunity of delegation …

equilibrium outcomes, and we fully characterize the supportable networks. If externalities are nonpositive and a convexity …

for externalities, substitutabilities and complementarities. Firms' cost parameter is private information and is … independently distributed across firms. Externalities are type dependent. This has two consequences: first, even though the private …, which makes the use of variational methods possible. A further consequence of having type-dependent externalities, which …