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Deciding to Delegate: On Distributional Consequences of Endogenous Delegation

Author

Listed:
  • Lara Ezquerra

    (Universitat de les Illes Balears)

  • Praveen Kujal

    (Middlesex University London and Economic Science Institute, Chapman University)

Abstract

We allow for principals to self-select into delegating (or not) the allocation decision to an agent in a modified dictator game. The standard dictator game is obtained when they choose not to delegate. Nearly half the subjects choose to be a dictator and make the allocation themselves. Dictators thus obtained transfer lower amounts to receivers, relative to when the decision making is passed to an agent (or the standard dictator game). Subjects self-selecting into the role of a dictator give less relative to those that pass the allocation decision to an agent. Finally, the distributional consequences of delegating, or not, vary with less inequality obtained when the delegation decision is delegated.

Suggested Citation

  • Lara Ezquerra & Praveen Kujal, 2019. "Deciding to Delegate: On Distributional Consequences of Endogenous Delegation," Working Papers 19-22, Chapman University, Economic Science Institute.
    • Handle: RePEc:chu:wpaper:19-22
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    File URL: https://digitalcommons.chapman.edu/esi_working_papers/281/
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    Cited by:

    1. Hausfeld, Jan & Fischbacher, Urs & Knoch, Daria, 2020. "The value of decision-making power in social decisions," Journal of Economic Behavior & Organization, Elsevier, vol. 177(C), pages 898-912.

    More about this item

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D0 - Microeconomics - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D9 - Microeconomics - - Micro-Based Behavioral Economics

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