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Exploration Through Delegation

In: A Theory of Dynamic Preferences

Author

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  • Christo A. Pirinsky

    (University of Central Florida, Business Administration and Finance)

Abstract

This chapter discusses exploration through delegation. By transferring responsibilities to others, people could explore states of the world that they are not even aware exist. People can delegate responsibilities to others either directly or indirectly by accepting their recommendations and advice. The chapter further argues that exploration could account for the growth and popularity of the advisory industry both at the personal and the business level. In a complex world, companies are increasingly seeking consultants to explore and implement emerging new technologies, industry trends, and new markets. The chapter also discusses the importance of trust for delegation. It argues that people with low levels of trust could under-delegate, while people with high levels of trust could over-delegate. The delegation of authority could also have a dark side, as the advisor might not always act in the best interest of the advisee.

Suggested Citation

  • Christo A. Pirinsky, 2026. "Exploration Through Delegation," Springer Books, in: A Theory of Dynamic Preferences, chapter 8, pages 127-134, Springer.
    • Handle: RePEc:spr:sprchp:978-3-032-13334-2_8
    DOI: 10.1007/978-3-032-13334-2_8
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