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 …

, and the relationship between the resources. Monitoring is then introduced to fine tune value of delegation. …

This paper presents a theory of the allocation of authority in an organization in which centralization is limited by … authority thus depends on external market conditions as well as the information and agency problems emphasized in the literature …. Evidence from a national survey of organizations shows that worker autonomy is related to separation costs as the theory …

of risk aversion, the higher the agency costs for delegation and hence the less profitable is a flexible contract versus … rigid, non discretionary contracts. Delegation grants some flexibility in the choice of the action by the agent, but also … play then an important role in determining the costs of delegation. The main focus of the paper lies indeed in the analysis …

exogenous risk and delegation. That is, we show that only if exogenous risk is sufficiently large, the risk-neutral principal …

Employers structure pay and employment relationships to mitigate agency problems. A large literature in economics … agency in employment relationships relies on highly stylized assumptions regarding human motivation, e.g., that employees … behavioral complexity and realism into models of agency within organizations. Specifically, we assess the insights gained by …

Employers structure pay and employment relationships to mitigate agency problems. A large literature in economics … agency in employment relationships relies on highly stylized assumptions regarding human motivation, e.g., that employees … behavioral complexity and realism into models of agency within organizations. Specifically, we assess the insights gained by …