of the agent which determines higher turnover costs for the firm. The choice of the degree of delegation a principal … offers to her subordinate is analyzed taking into account its benefits and costs. We show that the level of delegation is … influenced by the principal's and the agent's abilities, but it is lower the higher turnover costs are and the lower the degree …

This paper studies the costs and benefits of delegating decisions to superiorly informed agents relative to the use of … play then an important role in determining the costs of delegation. The main focus of the paper lies indeed in the analysis … of these costs and the consequences for whether or not delegation is optimal. We determine and characterize the …