Optimal sequential delegation

A-Tier
Journal: Journal of Economic Theory
Year: 2016
Volume: 163
Issue: C
Pages: 849-888

Authors (2)

Krähmer, Daniel (not in RePEc) Kováč, Eugen (Universität Duisburg-Essen)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

The paper extends the optimal delegation framework to a dynamic environment where the agent initially has private information merely about the distribution of the state and learns the true state only as the relation proceeds. The principal may want to elicit the agent's initial information and offers a menu of delegation sets where the agent first chooses a delegation set and subsequently an action within this set. We characterize environments under which it is optimal and under which it is not optimal to elicit the agent's initial information and characterize optimal delegation menus. In the former case, delegation sets may be disconnected and may feature gaps.

Technical Details

RePEc Handle
repec:eee:jetheo:v:163:y:2016:i:c:p:849-888
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25