How delegation improves commitment

McCallum (1995, American Economic Review Papers and Proceedings 85 (2), 207-211) conjectures that delegation merely relocates the commitment problem but does not solve it. This holds if optimal ex-ante policies do not change if additional information becomes available. However, with a flexibility-credibility trade-off delegation improves credibility.

MoreLess

Year of publication:	2010
Authors:	Perino, Grischa
Published in:	Economics letters. - Amsterdam [u.a.] : Elsevier, ISSN 0165-1765, ZDB-ID 7172102. - Vol. 106.2010, 2, p. 137-140

More details

Type of publication:	Article
Other identifiers:	10.1016/j.econlet.2009.11.005 [DOI]
Source:	OLC-SSG Economic Sciences

Persistent link: https://www.econbiz.de/10008351683