Disagreement and informal delegation in organizations

Abstract To investigate delegation decisions within organizations, we develop a principal-agent model in which the principal can only informally delegate authority to agent and parties openly disagree with each other sense of differing prior beliefs about optimal course action. Our analysis shows that degree disagreement determines what kind policy commit this, turn, alters agent’s effort for information acquisition. Notably, at moderate degrees disagreement, conditional may arise equilibrium, whereby credibly commits allowing exercise his if he generates additional Further, discuss two extensions undertakes an investment reduces cost acquiring information, discloses private strategically.