Bester, Helmut; Krähmer, Daniel - Volkswirtschaftliche Fakultät, … - 2013
We analyze the optimal allocation of authority in an organization whose members have conflicting preferences. One party … has decision-relevant private information, and the party who obtains authority decides in a self-interested way. As a … optimal to assign authority to the informed and not to the uninformed party, irrespective of the parties' conflict of interest …