A common agency within bureaucracy
We explore the welfare implications of multiple principals in the top level of bureaucracy. An agent has to carry out two separate tasks, which can either be organized by two separate principals, or combined under one principal. The relationship between the top level (the principals) and the lower l...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2016-06-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1183.pdf
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| _version_ | 1819130399476940800 |
|---|---|
| author | Nadide Banu OLCAY |
| author_facet | Nadide Banu OLCAY |
| author_sort | Nadide Banu OLCAY |
| collection | DOAJ |
| description | We explore the welfare implications of multiple principals in the top level of
bureaucracy. An agent has to carry out two separate tasks, which can either be organized
by two separate principals, or combined under one principal. The relationship between the
top level (the principals) and the lower level (agent) of bureaucracy is a “principal-agent
problem”. The presence of multiple principals generates a “common agency”. We show
that the optimal bureaucratic structure depends on the existence of rents from office: the
two systems produce equally welfare-efficient outcomes if there are no rents, a singleprincipal
model dominates common agency otherwise. |
| first_indexed | 2024-12-22T08:59:00Z |
| format | Article |
| id | doaj.art-07f9e205facb41de8eabf0de53f32169 |
| institution | Directory Open Access Journal |
| issn | 1841-8678 1844-0029 |
| language | English |
| last_indexed | 2024-12-22T08:59:00Z |
| publishDate | 2016-06-01 |
| publisher | General Association of Economists from Romania |
| record_format | Article |
| series | Theoretical and Applied Economics |
| spelling | doaj.art-07f9e205facb41de8eabf0de53f321692022-12-21T18:31:45ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86781844-00292016-06-01XXIII27310218418678A common agency within bureaucracyNadide Banu OLCAY0 University of Cologne, Germany We explore the welfare implications of multiple principals in the top level of bureaucracy. An agent has to carry out two separate tasks, which can either be organized by two separate principals, or combined under one principal. The relationship between the top level (the principals) and the lower level (agent) of bureaucracy is a “principal-agent problem”. The presence of multiple principals generates a “common agency”. We show that the optimal bureaucratic structure depends on the existence of rents from office: the two systems produce equally welfare-efficient outcomes if there are no rents, a singleprincipal model dominates common agency otherwise. http://store.ectap.ro/articole/1183.pdf principal-agentbureaucracyincentivespublic goods |
| spellingShingle | Nadide Banu OLCAY A common agency within bureaucracy Theoretical and Applied Economics principal-agent bureaucracy incentives public goods |
| title | A common agency within bureaucracy |
| title_full | A common agency within bureaucracy |
| title_fullStr | A common agency within bureaucracy |
| title_full_unstemmed | A common agency within bureaucracy |
| title_short | A common agency within bureaucracy |
| title_sort | common agency within bureaucracy |
| topic | principal-agent bureaucracy incentives public goods |
| url |
http://store.ectap.ro/articole/1183.pdf
|
| work_keys_str_mv | AT nadidebanuolcay acommonagencywithinbureaucracy AT nadidebanuolcay commonagencywithinbureaucracy |