Employment contracts give a principal the authority to decide flexibly which task his agent should execute. However … behavioral forces shape an important transaction cost of integration – the abuse of authority – and by providing an empirical …

This Paper views authority as the right to undertake decisions that have external effects on other members of the … this in a principal–agent model where the principal retains the authority to select ‘large’ projects but delegates the …

This paper analyses the relation between authority and incentives. It extends the standard principal--agent model by a … project selection stage in which the principal can either delegate the choice of project to the agent or keep the authority … consideration of effort incentives makes the principal less likely to delegate the authority over projects to the agent. In fact, if …

groups depends on the leader's authority to make personnel decisions, especially whether the leader can replace team members …

full authority over the agents, or they hand over this authority to an outside supplier by outsourcing these activities. By … incorporating authority in a stylized model of information processing, we endogenize the comparative advantage of each form of … authority is optimal. We also show which tasks should be outsourced to align the preferences of the outside supplier with those …

underlying agency problem. Moreover, the benefits and costs of integration originate from the same problem: to allocate resources …

the ultimate decision is either taken by a leader (decision by authority) or by majority vote. Optimal communication …

communication technology, have a wider span of organization, and are further removed from a decision unit with lending authority …