Melumad, Nahum D.; Mookherjee, Dilip; Reichelstein, Stefan - In: RAND Journal of Economics 26 (1995) 4, pp. 654-672
Agents in a hierarchy are commonly delegated authority to communicate and contract with agents at lower levels. While delegation reduces the burden of communication and information processing on the principal, it also introduces additional incentive problems. We find that with sufficient...