Englmaier, Florian; Filipi, Ales; Singh, Ravi - In: Journal of Economic Behavior & Organization 76 (2010) 2, pp. 413-427
We address the question how much authority a principal should delegate to a manager with conflicting interests and uncertain ability in a context in which the manager has both compensation-based and reputational incentives. The optimal level of authority balances the value of the manager's...