Why do we trust what other people say, and form beliefs on the basis of their speech? One answer: they are taken to have epistemic authority. Intuitively this means that the other person (or institution, or group) is taken to be authoritative in what they say, at least with respect to a particular domain. Here, we want to claim that there are (at least) two varieties of epistemic authority, one...

We assert that decision rights in organizations are not contractible: the boss can always overturn a subordinate’s decision, so formal authority resides only at the top. Although decision rights cannot be formally delegated, they might be informally delegated through self-enforcing relational contracts. We examine the feasibility of informal authority in two informational environments. We show ...

This paper studies a principal’s trade-off between using persuasion versus using interpersonal authority to get the agent to ‘do the right thing’ from the principal’s perspective (when the principal and agent openly disagree on the right course of action). It shows that persuasion and authority are complements at low levels of effectiveness but substitutes at high levels. Furthermore, the princ...

This paper presents a theory of the allocation of authority in an organization in which centralization is limited by the agent’s ability to disobey the principal. We show that workers are given more authority when they are costly to replace or do not mind looking for another job, even if they have no information advantage over the principal. The allocation of authority thus depends on external ...

It was not in a grove of trees, and I did see pillar light when first communed with Heavenly Mother. Instead, lying crumpled on the floor my shower, hot water beating down upon me. My breasts were heavy sore from producing milk for second baby, colicky newborn who would just stop crying. called out help, “Heavenly Mother, need you. Where are you? Why can't talk to you?”I Her. hear But felt Her ...

Within organizations, there are typically limits to leaders’ authority. This paper explores how organizations are structured in the face of such constraints. Many organizational phenomena can be understood as due to leaders’ desire to bolster the “legitimacy” of their authority. Examples include: above-market-clearing wages, merger decisions, bureaucratic organization, and rejection of overqual...