firm must transfer a large part of the surplus to the inactive firm in order to limit pre-emption. Learning; Pre …

Learning is crucial to organizational decision making but often needs to be delegated. We examine a dynamic delegation … the principal, privately learns the profitability over time and communicates to the principal. We formulate learning … delegation as a dynamic mechanism design problem and characterize the optimal delegation scheme. We show that private learning …

We test if firms statistically discriminate workers based on race when employer learning is asymmetric. Using data from … the NLSY79, we find evidence of asymmetric employer learning. In addition, employers statistically discriminate against …