Komai, Mana; Stegeman, Mark; Hermalin, Benjamin E. - In: American Economic Review 97 (2007) 3, pp. 944-947
An organization makes collective decisions through neither markets nor contracts. Instead, rational agents voluntarily choose to follow a leader. In many cases, incentive problems are solved: the unique nondegenerate equilibrium achieves the first best, even though every agent has incentives to...