bureaucracy rather than to an autocratic leader. We combine the Aghion-Tirole definition of formal and real authority with the … extent to which their subordinate bureaucrats have real decision-making power. We show that the lower is the level of …

a fraction of the transfer. The government faces a trade-off in its delegation decision: bureaucrats have knowledge of …-based regulation policy requires the government to make use of a bureaucracy; this has a bureaucratic cost, as the bureaucracy diverts … incentives to delegate. Furthermore, we discuss how partial delegation, i.e., delegation followed by laws and regulations that …

Risk-neutral individuals take more risky decisions when they have limited liability. Risk-neutral managers may not when … actions. The resulting decisions may be less, rather than more, risky. Making a decision after acquiring information provides … return. Further results on the form of contracts are also derived. -- managers ; risky decisions ; limited liability …

implemented. Fama & Jensen (1983) argue that the same members of many organization are often responsible for both decision … to express their discontent with the allocation of decision rights. How decisions come about also affects implementation … implementation leads to more delegation, but only if workers have high costs of obstructing informed decisions. We further find that …

. We document that price setting frictions, arising from adjustment costs of human decision makers, induce a conflict of … price recommendations are strategically biased and lead to suboptimal pricing by human decision makers. We quantify the …

Can generative artificial intelligence (AI) transform the role of the CEO by effectively automating CEO communication …? This study investigates whether AI can mimic a human CEO and whether employees’ perception of the communication’s source … distinguish between communication from their CEO and communication generated by an AI trained on the CEO’s prior communications …

We study the consequences of populism for government performance and the quality of bureaucracy. When voters lose trust …

We examine the power of incentives in bureaucracies by studying contracts offered by a bureaucrat to her agent. The … bureaucrat operates under a fixed budget, optimally chosen by a funding authority, and she can engage in policy drift, which we …-powered incentives. We discuss how the bureaucrat may benefit from stricter accountability as it leads to larger budgets. Low …