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 …

This paper views authority as the right to undertake decisions that impose externalities on other members of the … organization’s decisions. Under asymmetric information, the efficient allocation of authority depends on the communication of …

We analyze the optimal allocation of authority in an organization whose members have conflicting preferences. One party … has decision-relevant private information, and the party who obtains authority decides in a self-interested way. As a … optimal to assign authority to the informed and not to the uninformed party, irrespective of the parties' conflict of interest …

delegation of authority to them to replace their high incentive pay by incentives based on private benefits of control. In that …, but concentrated delegation of full authority to a single division head is optimal for cooperation being crucial. If … based on authority rights and minimizing costs for implementing high efforts. The analysis includes the owner of a firm, a …

We formalize a conception of authority, which is commonly defined as the right of controlling a person’s actions … embedded in human assets in sociology. Due to the inalienable property of human assets, the contractible formal authority is … hard to verify and enforce, while real authority usually diverges from formal authority. Inefficiency tends to arise when a …

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 …