(Not) delegating decisions to experts: The effect of uncertainty

A-Tier
Journal: Journal of Economic Theory
Year: 2020
Volume: 190
Issue: C

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

I construct a dynamic delegation model in which a principal can replace the agent to whom to delegate over time. Its unique feature is that the principal dynamically faces a choice between two types of agents with different multidimensional characteristics: experts with uncertain biases and non-experts with no bias. I investigate under what conditions the principal delegates to non-experts by focusing on the effect of the uncertainty regarding preference heterogeneity among experts. Its effect is different depending on the type of uncertainty: an increase in risk and in ambiguity (i.e., Knightian uncertainty) work in opposite directions with higher ambiguity rather than risk being a source of the delegation to non-experts. This analysis sheds new light on the sources of anti-elitism in politics.

Technical Details

RePEc Handle
repec:eee:jetheo:v:190:y:2020:i:c:s0022053120301101
Journal Field
Theory
Author Count
1
Added to Database
2026-01-25