Delegation of Regulation*

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A principal delegates multiple decisions to an agent, who has private information relevant to each decision. The principal is uncertain about the agent’s preferences. I solve for max-min optimal mechanisms – those which maximize the principal’s payoff against the worst agent preference type. These mechanisms are characterized by a property I call “aligned delegation.” In an aligned delegation m...

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ژورنال

عنوان ژورنال: The Journal of Industrial Economics

سال: 2020

ISSN: 0022-1821,1467-6451

DOI: 10.1111/joie.12238