This paper investigates optimal communication mechanisms with a two-dimensional policy space and no monetary transfers. Contrary to the one-dimensional setting, when a single principal controls two activities undertaken by his agent (cooperative design), the optimal communication mechanism never...

This paper investigates optimal mechanisms in a principal–agent framework with a two-dimensional decision space, quadratic payoffs and no monetary transfers. If the conflicts of interest between the principal and the agent are different on each dimension, then delegation is always strictly...