This paper offers an empirical test of complementarities among delegated authority, accountability, and monitoring, using unique survey data collected from group-affiliated companies in Japan. The survey provides information about how various decisions are made within business groups, each of...

This paper concerns moral hazard problems in multiagent situations where cooperation is an issue. Each agent allocates effort to his own task and to other tasks as "help." The principal may prefer an unambiguous division of labor by inducing each agent to specialize in his own task, or prefer...