Delegation and incentives

作者: Helmut Bester , Daniel Krähmer

DOI: 10.1111/J.1756-2171.2008.00033.X

关键词: DelegatePrincipal–agent problemDelegationPrincipal (commercial law)Limited liabilityIncentiveEconomicsProject selectionMicroeconomicsMoral hazard

摘要: This article analyzes the relation between authority and incentives. It extends standard principal-agent model by a project selection stage in which principal can either delegate choice of to agent or keep authority. The agent’s subsequent effort depends both on monetary incentives selected project. We find that consideration makes less likely over projects agent. In fact, if is protected limited liability, delegation never optimal.

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