Alonso, Ricardo; Matouschek, Niko - C.E.P.R. Discussion Papers - 2005
We analyse the optimal delegation of decision rights by a uninformed principal to an informed but biased agent. When … his preferred one. We fully characterize the optimal delegation set for general distributions of the state space and … delegation sets to be optimal. Finally, we show that the optimal delegation set takes the form of a single interval if the agent …