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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 …
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Ownership structures are an important element of the theory explaining corporate governance. This study presents detailed descriptive evidence on the ownership structures of German manufacturing firms. It addresses several shortcomings of the previous German empirical literature: First, we study...
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We study endogenous group formation in tournaments employing experimental threeplayer contests. We find that players in endogenously formed alliances cope better with the moral hazard problem in groups than players who are forced into an alliance. Also, players who are committed to expending...
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Ethnic diversity is typically measured by the well-known Hirschman-Herfindahl Index. This paper discusses the merits of an alternative approach, which is in our view better suited to tease out why and how ethnic diversity matters. The approach consists of two elements. First, all existing...
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