Domain knowledge, ability, and the principal's authority relations

A-Tier
Journal: RAND Journal of Economics
Year: 2014
Volume: 45
Issue: 2
Pages: 370-394

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

type="main"> <p>I consider how different managerial traits affect the authority relation between a principal and his agent. An increase in the principal's domain knowledge—which enhances his capability to verify the agent's recommendations—leads to an increase in the proportion of the agent's recommendations that are approved, an increase in the agent's initiative, and is unambiguously beneficial to the principal and to the agent. In contrast, an increase in the principal's general ability to explore additional alternatives on his own leads to the principal making a larger proportion of the decisions. This discourages the agent's initiative and can adversely affect the principal.

Technical Details

RePEc Handle
repec:bla:randje:v:45:y:2014:i:2:p:370-394
Journal Field
Industrial Organization
Author Count
1
Added to Database
2026-01-25