Article ID Journal Published Year Pages File Type
5072180 Games and Economic Behavior 2012 20 Pages PDF
Abstract
► We experiment on two delegation-communication games. ► A principal decides whether to delegate to or communicate with an informed agent. ► A major finding is that principals under-delegate and agents over-communicate. ► A level-k model is developed to analyze the non-equilibrium delegation decision. ► Under-delegation occurs under the belief that the agent will provide information.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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