TY  - RPRT
        AU  - Kräkel, Matthias
        TI  - Empowerment and the Dark Side of Delegation
        PY  - 2018/Jan/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 11289
        UR  - https://www.iza.org/index.php/publications/dp11289
        AB  - The existing delegation literature has focused on different preferences of principal and agent concerning project selection, which makes delegating authority costly for the principal. This paper shows that delegation has a cost even when the preferences of principal and agent are exogenously aligned. As application, the commitment effect of empowerment is considered, which has been addressed by the management and social psychology literature. In addition, it is shown that even in a setting without task commitment and other behavioral effects the principal might forgo delegation though being efficient.
        KW  - commitment
KW  - delegation
KW  - limited liability
KW  - moral hazard
KW  - renegotiation
        ER  -