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the principal at the communication stage affects our results. …
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We study a delegation problem within a Bayesian persuasion framework with the aim of understanding the incentive design of representatives. We are doing so by adding a preplay stage to the standard Bayesian persuasion model in which the receiver is allowed to choose a representative in order to...
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There are two common ways for a principal to influence the decision making of an agent. One is to manipulate the agent's information (persuasion problem). Another is to limit the agent's decisions (delegation problem). We show that, under general assumptions, these two problems are equivalent;...
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can deliberate secretly. To test the model's key predictions, we run an experiment. The results from the laboratory …
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Learning is crucial to organizational decision making but often needs to be delegated. We examine a dynamic delegation problem where a principal decides on a project with uncertain profitability. A biased agent, who is initially as uninformed as the principal, privately learns the profitability...
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