Sliwka, Dirk - In: Journal of Institutional and Theoretical Economics (JITE) 157 (2001) 4, pp. 568-568
We examine the question whether a decision should be delegated to a subordinate and whether this is done efficiently. We illustrate in a dynamic principal-agent model that delegation is useful for several reasons. First, it serves to test agents with unknown ability. Then, it may improve an...