This paper studies the costs and benefits of delegating decisions to superiorly informed agents relative to the use of … 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 …

We examine how the legal protection of outside shareholders and the appropriative costs that they induce influence the … incentives for private firms to go public. A higher degree of protection of shareholders can increase the appropriative costs … associated with the conflict between managers and shareholders. To counteract this effect the managers/owners increase the share …

The paper analyzes the efficiency costs of dividend taxation in an effort-based corporate agency model in which non …

contracts which determine their managers' salaries. One contract simply gives managers incentives to maximize firm profits … only rarely chosen in the experimental markets. This behavior is rational given that managers do not play according to the …

bonus that consumers receive at some point during the contractual period. But, if for instance its production costs exceed … alternative approaches such as models on consumption smoothing, (quasi-)hyperbolic discounting, or switching costs. …

. Agency theory’s insistence on linking the compensation of managers and directors as closely as possible to firm performance …