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Delegation, Committees, and Managers
Author(s) -
Wernerfelt Birger
Publication year - 2007
Publication title -
journal of economics and management strategy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.672
H-Index - 68
eISSN - 1530-9134
pISSN - 1058-6407
DOI - 10.1111/j.1530-9134.2007.00131.x
Subject(s) - delegate , delegation , argument (complex analysis) , private information retrieval , incentive , ex ante , business , group decision making , public relations , microeconomics , economics , political science , management , social psychology , psychology , computer science , computer security , biochemistry , chemistry , macroeconomics , programming language
Attempts to economize on decision‐making time imply that groups of peers may delegate authority to a small committee of managers even though this means that the information and preferences of the uninvolved players are neglected. Decisions are more likely to be delegated to players with better information and more representative preferences. The possibility of ex post protests may force managers to take the preferences of others into account but may also give them incentives to ignore their private information. The argument may explain employees' willingness to let bosses decide, and thus throw some light on the theory of the firm.