Optimal Delegation in a Multidimensional World

• Tác giả: Andreas Kleiner
• Ngôn ngữ: eng
• Ký hiệu phân loại: 206.1 Leaders and their work
• Thông tin xuất bản: 2022
• Bộ sưu tập: Metadata
• ID: 195643

Tóm tắt

We study a model of delegation in which a principal takes a multidimensional action and an agent has private information about a multidimensional state of the world. The principal can design any direct mechanism, including stochastic ones. We provide necessary and sufficient conditions for an arbitrary mechanism to maximize the principal's expected payoff. We also discuss simple conditions which ensure that some convex delegation set is optimal. A key step of our analysis shows that a mechanism is incentive compatible if and only if its induced indirect utility is convex and lies below the agent's first-best payoff.