Título:
|
Decentralization and the Gains from Monitoring
|
Autor/a:
|
Theilen, Bernd
|
Otros autores:
|
Universitat Rovira i Virgili. Departament d'Economia |
Resum:
|
This paper analyzes the delegation of contracting capacity in a moral hazard environment with sequential
production in a project which involves a principal and two agents. The agent in charge of the nal production
can obtain soft information about the other agent's effort choice by investing in monitoring. I investigate the
circumstances under which it is optimal for the principal to use a centralized organization in which she designs
the contracts with both agents or to use a decentralized organization in which she contracts only one agent, and
delegates the power to contract the other agent. It is shown that in this setting a decentralized organization can
be superior to a centralized organization. This is because the principal is better off under monitoring and the
incentives for an agent to invest in monitoring can be higher in a decentralized organization. The circumstances
under which this is true are related to the monitoring costs and the importance of each agent for production.
The results explain the recent application of the design-build method in public procurement.
Journal of Economic Literature Classi cation Numbers: D23, D82, L14, L22.
Keywords: Decentralization of Contracting, Monitoring, Moral Hazard. |
Fecha de creación:
|
2009 |
Materias (CDU):
|
65 - Gestió i organització. Administració i direcció d'empreses. Publicitat. Relacions públiques. Mitjans de comunicació de masses |
Materia(s):
|
Conducta organitzacional Contractació externa |
Derechos:
|
Aquest document està subjecte a una llicència d'ús de Creative Commons, amb la qual es permet copiar, distribuir i comunicar públicament l'obra sempre que se'n citin l'autor original, la universitat i el departament i no se'n faci cap ús comercial ni obra derivada, tal com queda estipulat en la llicència d'ús (http://creativecommons.org/licenses/by-nc-nd/2.5/es/) |
Tipo de documento:
|
Documento de trabajo |
ISSN:
|
1988 - 0812
|
Collection:
|
Documents de treball del Departament d'Economia;2009-08
|
Compartir:
|
|