Hierarchical Decentralization of Incentive Contracts
研究层级组织中上级向下级授权沟通与签约时，如何通过充分监督和特定签约顺序解决额外激励问题，实现次优结果。
Agents in a hierarchy are commonly delegated authority to communicate and contract with agents at lower levels. While delegation reduces the burden of communication and information processing on the principal, it also introduces additional incentive problems. We find that with sufficient monitoring of the agents' contributions to joint production, and a particular sequence of contracting, the additional incentive problems inherent in delegation can be completely resolved. These conditions are generally also necessary for delegation to achieve second-best results.