Delegation of information verification

B-Tier
Journal: International Journal of Industrial Organization
Year: 2013
Volume: 31
Issue: 5
Pages: 488-500

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

An agent may manipulate information when transmitting it to the principal. A direct response to this problem is to verify the information. The paper explores a situation where the principal engages in information verification herself or alternatively delegates it to the agent. The paper finds that delegated verification can be optimal if the agent has to expend costly effort to acquire information before verifying it. Delegated verification promotes the agent's incentive for information acquisition. The paper also finds that delegated verification is more likely to be optimal if the agent is more biased.

Technical Details

RePEc Handle
repec:eee:indorg:v:31:y:2013:i:5:p:488-500
Journal Field
Industrial Organization
Author Count
1
Added to Database
2026-01-25