This paper develops a theory of the firm in which a firm's centralized asset ownership and low-powered incentives give a manager 'interpersonal authority' over employees (in a world with differing priors). The paper derives such interpersonal authority as an equilibrium phenomenon. One key...

This paper addresses primarily two questions. First, when or why should a company's strategy be developed by its CEO versus by some outside analyst or other insider? Second, how does strategy, properly defined, interact with vision (in the sense of a strong belief) about various decisions? In...