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Delegating management to experts

Publication ,  Journal Article
Dai, C; Lewis, TR; Lopomo, G
Published in: RAND Journal of Economics
January 1, 2006

Owners of property and assets frequently delegate decisions about operating and maintaining their property to managers who are better informed about local market conditions. We analyze how owners optimally contract with managers who vary in their expertise at prescribing service. We show that the most expert managers offer the greatest variation in operating recommendations. Owners benefit from dealing with experts provided they contract sequentially, whereby terms are negotiated gradually as the manager acquires information. Copyright © 2006, RAND.

Duke Scholars

Published In

RAND Journal of Economics

DOI

ISSN

0741-6261

Publication Date

January 1, 2006

Volume

37

Issue

3

Start / End Page

503 / 520

Related Subject Headings

  • Economics
  • 3803 Economic theory
  • 3802 Econometrics
  • 3801 Applied economics
  • 14 Economics
 

Citation

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Dai, C., Lewis, T. R., & Lopomo, G. (2006). Delegating management to experts. RAND Journal of Economics, 37(3), 503–520. https://doi.org/10.1111/j.1756-2171.2006.tb00028.x
Dai, C., T. R. Lewis, and G. Lopomo. “Delegating management to experts.” RAND Journal of Economics 37, no. 3 (January 1, 2006): 503–20. https://doi.org/10.1111/j.1756-2171.2006.tb00028.x.
Dai C, Lewis TR, Lopomo G. Delegating management to experts. RAND Journal of Economics. 2006 Jan 1;37(3):503–20.
Dai, C., et al. “Delegating management to experts.” RAND Journal of Economics, vol. 37, no. 3, Jan. 2006, pp. 503–20. Scopus, doi:10.1111/j.1756-2171.2006.tb00028.x.
Dai C, Lewis TR, Lopomo G. Delegating management to experts. RAND Journal of Economics. 2006 Jan 1;37(3):503–520.

Published In

RAND Journal of Economics

DOI

ISSN

0741-6261

Publication Date

January 1, 2006

Volume

37

Issue

3

Start / End Page

503 / 520

Related Subject Headings

  • Economics
  • 3803 Economic theory
  • 3802 Econometrics
  • 3801 Applied economics
  • 14 Economics