Arve, Malin; Honryo, Takakazu
(22. September 2015):
Delegation and Communication.
SFB/TR 15 Discussion Paper No. 524
This paper analyzes delegation and joint decision making in an environment with
private information and partially aligned preferences. We compare the benefits of
these two decision making procedures as well as the interaction between them. We
give a condition under which delegation is preferred to ex post joint decision making
and we show how the interaction between delegation and ex post joint decision
making always crowds out delegation. Finally, we analyze how the availability of
the principal at the communication stage affects our results.