Jost, Peter-J.; Lammers, Frauke - In: Journal of Institutional and Theoretical Economics (JITE) 166 (2010) 2, pp. 212-238
We examine the optimal organizational form of project evaluation and implementation under moral hazard. In the evaluation phase, two fallible risk-neutral agents sequentially screen projects. The approved projects are subsequently implemented in the development phase. We show that moral hazard...