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Delegation and Motivation

  • Lukas ANGST

    (Department of Economics, University of Zurich)

  • Karol Jan BOROWIECKI

    ()

    (Department of Economics, Trinity College Dublin)

In this article we study the determinants of decision rights transfer and its effects on the motivation of an agent. The study is based on a laboratory experiment conducted on 130 subjects playing an innovative principal-agent game. Interestingly, the results show that agents do not favour a delegation and a decision is considered rather burdensome. Although the experiment could not give support for the behavioural hypothesis of higher effort provided by participants who receive choice subsequently, the survey illuminates the interaction between delegation motives, effort motivators, goals and other perceptions of the agents.

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File URL: https://www.tcd.ie/Economics/TEP/2011/TEP1611.pdf
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Paper provided by Trinity College Dublin, Department of Economics in its series Trinity Economics Papers with number tep1611.

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Length: 44 pages
Date of creation: Oct 2011
Date of revision:
Handle: RePEc:tcd:tcduee:tep1611
Contact details of provider: Postal: Trinity College, Dublin 2
Phone: (+ 353 1) 6081325
Fax: 6772503
Web page: http://www.tcd.ie/Economics/

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  1. Matthew Rabin, 2001. "Risk Aversion and Expected-Utility Theory: A Calibration Theorem," Method and Hist of Econ Thought 0012001, EconWPA.
  2. Cremer, Jacques, 1995. "Arm's Length Relationships," The Quarterly Journal of Economics, MIT Press, vol. 110(2), pages 275-95, May.
  3. Fehr, Ernst & Herz, Holger & Wilkening, Tom, 2012. "The Lure of Authority: Motivation and Incentive Effects of Power," IZA Discussion Papers 7030, Institute for the Study of Labor (IZA).
  4. Baker, George & Gibbons, Robert & Murphy, Kevin J, 1999. "Informal Authority in Organizations," Journal of Law, Economics and Organization, Oxford University Press, vol. 15(1), pages 56-73, April.
  5. Aghion, Philippe & Tirole, Jean, 1997. "Formal and Real Authority in Organizations," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 1-29, February.
  6. Anthony M. Marino & John G. Matsusaka, 2005. "Decision Processes, Agency Problems, and Information: An Economic Analysis of Capital Budgeting Procedures," Review of Financial Studies, Society for Financial Studies, vol. 18(1), pages 301-325.
  7. Roland Bénabou & Jean Tirole, 2003. "Intrinsic and Extrinsic Motivation," Review of Economic Studies, Oxford University Press, vol. 70(3), pages 489-520.
  8. Jan Zabojnik, 2002. "Centralized and Decentralized Decision Making in Organizations," Journal of Labor Economics, University of Chicago Press, vol. 20(1), pages 1-22, January.
  9. Bauke Visser, 2007. "Motivating Through Delegating Tasks or Giving Attention," Journal of Law, Economics and Organization, Oxford University Press, vol. 23(3), pages 731-742, October.
  10. Roland Bénabou & Jean Tirole, 2002. "Self-Confidence And Personal Motivation," The Quarterly Journal of Economics, MIT Press, vol. 117(3), pages 871-915, August.
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