- (pp. 66-83)
AbstractA 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.
Citation2014. "Aligned Delegation." American Economic Review, 104(1): 66-83. DOI: 10.1257/aer.104.1.66
- D44 Auctions
- D83 Search; Learning; Information and Knowledge; Communication; Belief
- J16 Economics of Gender; Non-labor Discrimination