Getting Permission
- (pp. 459-72)
Abstract
A manager has access to expert advisers. The manager selects at most one project and can implement it only if one expert provides support. The game in which the manager consults experts simultaneously typically has multiple equilibria, including one in which at least one expert supports the manager's favorite project. Only one outcome, the experts' most preferred equilibrium outcome, survives iterated deletion of weakly dominated strategies. We show that no sequential procedure can perform better for the manager than the experts' most preferred equilibrium and exhibit a sequential protocol that does as well.Citation
Hu, Peicong, and Joel Sobel. 2022. "Getting Permission." American Economic Review: Insights, 4 (4): 459-72. DOI: 10.1257/aeri.20210494Additional Materials
JEL Classification
- C72 Noncooperative Games
- D23 Organizational Behavior; Transaction Costs; Property Rights
- D82 Asymmetric and Private Information; Mechanism Design