Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5072180 | Games and Economic Behavior | 2012 | 20 Pages |
Abstract
⺠We experiment on two delegation-communication games. ⺠A principal decides whether to delegate to or communicate with an informed agent. ⺠A major finding is that principals under-delegate and agents over-communicate. ⺠A level-k model is developed to analyze the non-equilibrium delegation decision. ⺠Under-delegation occurs under the belief that the agent will provide information.
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Authors
Ernest K. Lai, Wooyoung Lim,