Technology, Information and the Decentralization of the Firm

@article{Acemoglu2006TechnologyIA,
  title={Technology, Information and the Decentralization of the Firm},
  author={Daron Acemoglu and Philippe Aghion and Claire Lelarge and John Van Reenen and Fabrizio Zilibotti},
  journal={European Finance eJournal},
  year={2006}
}
This paper develops a framework to analyze the relationship between the diffusion of new technologies and the decentralization decisions of firms. Centralized control relies on the information of the principal, which we equate with publicly available information. Decentralized control, on the other hand, delegates authority to a manager with superior information. However, the manager can use her informational advantage to make choices that are not in the best interest of the principal. As the… 
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