The optimality of (stochastic) veto delegation

IF 1 3区 经济学 Q3 ECONOMICS
Xiaoxiao Hu , Haoran Lei
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引用次数: 0

Abstract

We analyze the optimal delegation problem between a principal and an agent, assuming that the latter has state-independent preferences. We demonstrate that if the principal is more risk-averse than the agent toward non-status quo options, an optimal mechanism is a veto mechanism. In a veto mechanism, the principal uses veto (i.e., maintaining the status quo) to balance the agent's incentives and does not randomize among non-status quo options. We characterize the optimal veto mechanism in a one-dimensional setting. In the solution, the principal uses veto only when the state surpasses a critical threshold.
(随机)否决权委托的最优性
假设代理人具有独立于国家的偏好,我们分析了委托人和代理人之间的最优委托问题。我们证明,如果委托人比代理人对非现状选项更厌恶风险,则最优机制是否决机制。在否决机制中,委托人使用否决权(即维持现状)来平衡代理人的激励,并且不会随机选择非现状选项。我们描述了一维情况下的最佳否决机制。在该解决方案中,主体仅在状态超过临界阈值时使用否决权。
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来源期刊
CiteScore
1.90
自引率
9.10%
发文量
148
期刊介绍: Games and Economic Behavior facilitates cross-fertilization between theories and applications of game theoretic reasoning. It consistently attracts the best quality and most creative papers in interdisciplinary studies within the social, biological, and mathematical sciences. Most readers recognize it as the leading journal in game theory. Research Areas Include: • Game theory • Economics • Political science • Biology • Computer science • Mathematics • Psychology
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