IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Delegation and Value Creation

  • Gerald Eisenkopf

    ()

    (Department of Economics, University of Konstanz, Germany)

  • Stephan Nüesch

    ()

    (Business Economics - Corporate Governance - Personnel Economics, University of Zurich, Switzerland)

Registered author(s):

    Many scholars argue that the delegation of decision rights to independent institutions promotes trust and specific investments. We test this conjecture with variations of the trust game in which the back transfer decision is delegated to a third party. A randomly chosen third party with a fixed payment induces larger investments over time although the experimental design rules out reputation building. Changes in the third party’s selection procedure eliminate this benefit. If the third party gets a reward for the appointment, delegation actually destroys trust. Investors (unwarrantedly) fear a diffusion of responsibility and lower back transfers in this case.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.wiwi.uni-konstanz.de/workingpaperseries/WP_13-Eisenkopf-Nueesch_2013.pdf
    Download Restriction: no

    Paper provided by Department of Economics, University of Konstanz in its series Working Paper Series of the Department of Economics, University of Konstanz with number 2013-13.

    as
    in new window

    Length: 38 pages
    Date of creation: 20 Jun 2013
    Date of revision:
    Handle: RePEc:knz:dpteco:1313
    Contact details of provider: Postal: D-78457 Konstanz
    Phone: +49-7531-88-2566/2565
    Fax: +49-7531-88-4135
    Web page: http://www.wiwi.uni-konstanz.de/fb

    More information through EDIRC

    Order Information: Web: http://www.wiwi.uni-konstanz.de/fb

    References listed on IDEAS
    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.:

    as in new window
    1. Laurent Muller & Martin Sefton & Richard Steinberg & Lise Vesterlund, 2005. "Strategic Behavior and Learning in Repeated Voluntary-Contribution Experiments," Discussion Papers 2005-13, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    2. Santiago Sanchez-Pages & Marc Vorsatz, 2007. "Enjoy the Silence: An Experiment on Truth-Telling," ESE Discussion Papers 155, Edinburgh School of Economics, University of Edinburgh.
    3. Sanchez-Pages, Santiago & Vorsatz, Marc, 2007. "An experimental study of truth-telling in a sender-receiver game," Games and Economic Behavior, Elsevier, vol. 61(1), pages 86-112, October.
    4. Björn Bartling & Urs Fischbacher, 2008. "Shifting the Blame: On Delegation and Responsibility," TWI Research Paper Series 32, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
    5. Lucas C. Coffman, 2011. "Intermediation Reduces Punishment (and Reward)," American Economic Journal: Microeconomics, American Economic Association, vol. 3(4), pages 77-106, November.
    6. Rogoff, Kenneth, 1990. "Equilibrium Political Budget Cycles," American Economic Review, American Economic Association, vol. 80(1), pages 21-36, March.
    7. Iris Bohnet & Steffen Huck, 2004. "Repetition and Reputation: Implications for Trust and Trustworthiness When Institutions Change," CREMA Working Paper Series 2004-09, Center for Research in Economics, Management and the Arts (CREMA).
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:knz:dpteco:1313. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gundula Hadjiani)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.