Relational delegation

@inproceedings{Alonso2004RelationalD,
  title={Relational delegation},
  author={Ricardo Alonso and Niko Matouschek},
  year={2004}
}
We analyze a cheap talk game with partial commitment by the principal. We …rst treat the principal’s commitment power as exogenous and then endogenize it in an in…nitely repeated game. We characterize optimal decision making for any commitment power and show when it takes the form of threshold delegation in which case the agent can make any decision below a threshold and centralization in which case the agent has no discretion. For small biases threshold delegation is optimal for any smooth… CONTINUE READING
Highly Cited
This paper has 17 citations. REVIEW CITATIONS

From This Paper

Topics from this paper.

References

Publications referenced by this paper.
Showing 1-7 of 7 references

“Delegating Decision Making to an Agent with Unknown Preferences.”Mimeo

  • M. Armstrong
  • Journal of Economics,
  • 2005
Highly Influential
8 Excerpts

“Speci…c and General Knowledge and Organizational Structure.” In L

  • W. Meckling
  • Werin and H. Wijkander, eds., Contract Economics…
  • 1992
Highly Influential
5 Excerpts

“The Capital Budgeting Process, Incentives and Information.”Journal of Finance, Vol

  • M. Harris, A. Raviv
  • On Incentives and Control in Organizations. Ph.D…
  • 1996
1 Excerpt

“Communication in Settings with No Transfers.”RAND

  • N. Melumad, T. Shibano
  • Journal of Economics, Vol
  • 1991
1 Excerpt

“Capital Budgeting Practices of Twelve Large Manufacturers.”Financial

  • M. Ross
  • Management, Vol
  • 1986
2 Excerpts

“Communication by Multiple Interest Groups.”Mimeo

  • D. Martimort, A. Semenov
  • Marshuetz, R. “How American Can Allocates Capital…
  • 1985

Similar Papers

Loading similar papers…