Puschke, Kerstin - Fachbereich Wirtschaftswissenschaft, Freie Universität … - 2005
Authority is modelled as the right to undertake a non-contractible decision in a joint project. We show that the … allocation of authority depends on bargaining power and differences in both parties cost functions. The decision-maker is assumed … limited liability, the agent with the larger cost parameter receives authority if the agents cost parameters are very …
