Using an agency model, we show how delegation, by generating additional private information, improves dynamic … effect which reduces an inefficient agent's take-the-money-and-run incentive. Although delegation entails a loss of control …, it is optimal when uncertainty about operational efficiency is large. Moreover, delegation is more effective with …

schemes for the workers. We show that the value of delegation as well as the optimal design of the compensation scheme …

Supplementary Appendix to "Delegation and Nonmonetary Incentives."The paper "Delegation and Nonmonetary Incentives" to …