We study the optimal hierarchical structure of an organization under limited commitment. The organization cannot make a long term commitment to wages and output levels, while it can commit to its hierarchical structure. We show that the optimal hierarchical structure is horizontal when it is...

Using an agency model, we show how delegation, by generating additional private information, improves dynamic incentives under limited commitment. It circumvents ratchet effects and facilitates the revelation of persistent private information through two effects: a play-hardball effect, which...

This paper studies the optimal structure of spectrum charges under the information asymmetry between the government and firms, extending the model of Yoon and Lee (2005). In our model, the government assigns the spectrum to the firms in the first stage during which the demand is not realized yet...