Delegation and incentives
在标准委托代理模型中引入项目选择阶段，分析委托人是否应将项目选择权授予代理人，发现考虑努力激励后委托人更不愿授权，且在代理人受有限责任保护时授权从不最优。
This article analyzes the relation between authority and incentives. It extends the standard principal‐agent model by a project selection stage in which the principal can either delegate the choice of project to the agent or keep the authority. The agent's subsequent choice of effort depends both on monetary incentives and the selected project. We find that the consideration of effort incentives makes the principal less likely to delegate the authority over projects to the agent. In fact, if the agent is protected by limited liability, delegation is never optimal.