-employee relationship. We study a model of delegation with an informed agent, where the principal may impose money-burning on the agent as a … some results novel to the delegation literature. First, money-burning is more likely if the principal is more sensitive to …

The existing delegation literature has focused on different preferences of principal and agent concerning project … selection, which makes delegating authority costly for the principal. This paper shows that delegation has a cost even when the … without task commitment and other behavioral effects the principal might forgo delegation though being efficient. …