Accept or reject? An organizational perspective

B-Tier
Journal: International Journal of Industrial Organization
Year: 2014
Volume: 34
Issue: C
Pages: 66-74

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

This paper compares the relative performance of different organizational structures for the decision of accepting or rejecting a project of uncertain quality. When the principal is uninformed and relies on the advice of an informed and biased agent, cheap-talk communication is persuasive and it is equivalent to delegation of authority, provided that the agent's bias is small. When the principal has access to additional private information, cheap-talk communication dominates both (conditional) delegation and more democratic organizational arrangements such as voting with unanimous consensus.

Technical Details

RePEc Handle
repec:eee:indorg:v:34:y:2014:i:c:p:66-74
Journal Field
Industrial Organization
Author Count
3
Added to Database
2026-01-26