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In this laboratory experiment we study the use of strategic ignorance to delegate real authority within a firm. A worker can gather information on investment projects, while a manager makes the implementation decision. The manager can monitor the worker. This allows her to better exploit the...
Persistent link: https://www.econbiz.de/10008677978
which legislative delegation and sequential decisionmaking are consistent in equilibrium with the presence of two …
Persistent link: https://www.econbiz.de/10008727318
in new product development (NPD): supply network delegation; and supply network intervention. The implications of the two … delegation, when applied as part of supplier involvement in product development, and positive and negative indications of … delegation and intervention, depending on the actor perspective: manufacturers perceive a need to control the product development …
Persistent link: https://www.econbiz.de/10010691386
This paper explores the role of information transmission and misaligned interests across levels of government in explaining variation in the degree of decentralization across countries. Within a two-sided incomplete information principal-agent framework, it analyzes two alternative...
Persistent link: https://www.econbiz.de/10010692435
We study delegating a consumer's treatment plan decisions to an altruistic physician. The physician's degree of altruism is his private information. The consumer's illness severity will be learned by the physician, and also will become his private information. Treatments are discrete choices,...
Persistent link: https://www.econbiz.de/10010693377
This paper explores the role of information transmission and misaligned interests across levels of government in explaining variation in the degree of decentralization across countries. Within a two-sided incomplete information principal-agent framework, it analyzes two alternative...
Persistent link: https://www.econbiz.de/10010693469
Corporate managers and executive compensation in many industries place significant emphasis on measures of firm size, such as sales revenue or market share. Such objectives have an important - yet thus far unquantifed - impact on market performance. With n symmetric firms, equilibrium welfare...
Persistent link: https://www.econbiz.de/10010699810
example of a “delegation-scheme.” Conversely, project aid represents a more “centralized” type of aid. According to the theory … of policies should be increased (delegation). Conversely, there should be less freedom in designing policies when donors …
Persistent link: https://www.econbiz.de/10010701088
Using an agency model, we show how delegation, by generating additional private information, improves dynamic … effect which reduces an inefficient agent’s take-the-money-and-run incentive. Although delegation entails a loss of control …, it is optimal when uncertainty about operational efficiency is large. Moreover, delegation is more effective with …
Persistent link: https://www.econbiz.de/10010764295
Technology has transformed the once powerful office of ambassador into a glorified sales position, while nurses, teaching assistants and medical technicians all benefit from the ICT revolution. According to an empirical study by Professor John Van Reenen and colleagues, these contrasting...
Persistent link: https://www.econbiz.de/10010765688