This paper analyses the relation between authority and incentives. It extends the standard principal / agent model by a … project selection stage in which the principal can either delegate the choice of project to the agent or keep the authority … consideration of e ort incentives makes the principal less likely to delegate the authority over projects to the agent. In fact, if …

conditions under which simple delegation of authority is the solution to the complete-contracting problem of the parties. We …

conditions under which simple delegation of authority is the solution to the complete-contracting problem of the parties. We …

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 …

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