We study an organization with a top management (principal) and multiple subunits (agents) with private information that determine the organization's aggregate efficiency. Under centralization, eliciting the agents' private information may induce the principal to manipulate aggregate information,...

We study information flows in an organization with a top management (principal) and multiple subunits (agents) with private information that determines the organization's aggregate efficiency. Under centralization, eliciting the agents' private information may induce the principal to manipulate...

We study a two-stage agency model in which the players take the role of the principal in turn. In the first stage, the board of the firm decides payment to the manager to induce him to set up and implement a project. In the second stage, the board evaluates the project to learn its value, and...