Delegation, monitoring, and relational contracts
This paper analyzes in a relational contracting framework when a principal should fully delegate a task to a team of hired workers or only partially delegate the task and work herself in the team. It is shown that full delegation is more likely to be optimal under a less efficient monitoring technology, lower generated surplus, lower complementarity of efforts, or a larger team of workers.
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References listed on IDEAS
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- Goldluecke, Susanne & Kranz, Sebastian, 2010.
"In?nitely Repeated Games with Public Monitoring and Monetary Transfers,"
Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems
332, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Goldlücke, Susanne & Kranz, Sebastian, 2012. "Infinitely repeated games with public monitoring and monetary transfers," Journal of Economic Theory, Elsevier, vol. 147(3), pages 1191-1221.
- Li, Sanxi & Ye, Bing & Yu, Jianyu, 2012. "Observability and incentive in organizations," Economics Letters, Elsevier, vol. 114(2), pages 205-207.
- Jonathan Levin, 2003.
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American Economic Association, vol. 93(3), pages 835-857, June.
- Bengt Holmstrom, 1981.
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471, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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