Bester, Helmut; Krähmer, Daniel - Fachbereich Wirtschaftswissenschaft, Freie Universität … - 2006
This paper analyses the relation between authority and incentives. It extends the standard principal / agent model by a …. The agent's subsequent choice of e ort depends both on monetary incentives and the selected project. We nd that the … consideration of e ort incentives makes the principal less likely to delegate the authority over projects to the agent. In fact, if …