American Economic Review: Vol. 104 No. 1 (January 2014)


Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter


AER - All Issues

AER Forthcoming Articles

Aligned Delegation

Article Citation

Frankel, Alexander. 2014. "Aligned Delegation." American Economic Review, 104(1): 66-83.

DOI: 10.1257/aer.104.1.66


A principal delegates multiple decisions to an agent, who has private information relevant to each decision. The principal is uncertain about the agent's preferences. I solve for max-min optimal mechanisms— those which maximize the principal's payoff against the worst case agent preference types. These mechanisms are characterized by a property I call "aligned delegation": all agent types play identically, as if they shared the principal's preferences. Max-min optimal mechanisms may take the simple forms of ranking mechanisms, budgets, or sequential quotas.

Article Full-Text Access

Full-text Article

Additional Materials


Frankel, Alexander (U Chicago)

JEL Classifications

D44: Auctions
D83: Search; Learning; Information and Knowledge; Communication; Belief
J16: Economics of Gender; Non-labor Discrimination

American Economic Review

Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)


AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals

AEA Member Login:

AEAweb | AEA Journals | Contact Us