, although it involves agency costs, and that conglomerates can arise due to information problems in capital markets. In a …. In this paper we show that delegation can be the only way to exploit gains from diversification when overload costs of … diversification are high; delegation thus is the key ingredient to be able to diversify. …

of stocks in the benchmark. This paper studies the optimal delegation contract when there is principal-agent friction … principal and the agent, and on equilibrium asset prices. When agency friction is severe, the optimal contract provides rewards …

We develop a two-period general equilibrium model of portfolio delegation with competitive, differentially skilled …