Self-Interest through Delegation: An Additional Rationale for the Principal-Agent Relationship

S-Tier
Journal: American Economic Review
Year: 2010
Volume: 100
Issue: 4
Pages: 1826-46

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

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

Abstract

Principal-agent relationships are typically assumed to be motivated by efficiency gains from comparative advantage. However, principals may also delegate tasks to avoid taking direct responsibility for selfish or unethical behavior. We report three laboratory experiments in which principals repeatedly either decide how much money to share with a recipient or hire agents to make sharing decisions on their behalf. Across several experimental treatments, recipients receive significantly less, and in many cases close to nothing, when allocation decisions are made by agents. (JEL D82)

Technical Details

RePEc Handle
repec:aea:aecrev:v:100:y:2010:i:4:p:1826-46
Journal Field
General
Author Count
3
Added to Database
2026-01-25