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Explicit and latent authority in hierarchical organizations

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Author Info
Brink, Rene van den
Gilles, Robert P. (Tilburg University, Center for Economic Research)

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Abstract

We consider the problem of control of access to a firm's productive asset, embedding the decision makers into a structure of formal authority relationships. Within such a structure, decision makers act as principal to some decision makers, while they act as agent to other decision makers. We study under which conditions decision makers exercise their own authority and accept their superiors' authority. We distinguish two types of behavior. First, we investigate a non-cooperative equilibrium concept describing explicit exercise of authority. Second, we consider the possibility of subordinates to submit themselves to authority even though such authority is not enforced explicitly.

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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 75.

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Date of creation: 2005
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Handle: RePEc:dgr:kubcen:200575

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Find related papers by JEL classification:
C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other
D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Gilles, R.P. & Sarangi, S., 2004. "Social network formation with consent," Discussion Paper 70, Tilburg University, Center for Economic Research. [Downloadable!]
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