This paper views authority as the right to undertake decisions that have external effects on other members of the … this in a principal-agent model where the principal retains the authority to select '€˜large' projects but delegates the …

This paper presents a theory of the allocation of authority in an organization in which centralization is limited by … the agent's ability to disobey the principal. We show that workers are given more authority when they are costly to … authority thus depends on external market conditions as well as the information and agency problems emphasized in the literature …

may prefer to delegate authority over decisions to the risk-averse agent. Intuitively, for incentive reasons, the …

We formalize a conception of authority, which is commonly defined as the right of controlling a person's actions … embedded in human assets in sociology. Due to the inalienable property of human assets, the contractible formal authority is … hard to verify and enforce, while real authority usually diverges from formal authority. Inefficiency tends to arise when a …

In this laboratory experiment we study the use of strategic ignorance to delegate real authority within a firm. A …

This paper views authority as the right to undertake decisions that have external effects on other members of the … this in a principal-agent model where the principal retains the authority to select ' large' projects but delegates the …