Social distance and delegation: Does anonymity matter?

Michalis Drouvelis and Hamideh Mohtashami Borzadaran

Economic Inquiry, 2026, vol. 64, issue 2, 468-490

Abstract: In this paper, we report on two experimental studies that examine the impact of social distance on delegation and uncover the role of anonymity driving delegation in a principal‐agent setting. Study 1 shows that reducing the social distance makes principals less likely to delegate. Study 2 offers evidence that the likelihood of delegation is not affected by whether the principal is informed that the recipients will not find out whether the principal is their friend or a stranger. Our findings have implications for the underlying sources of pro‐sociality in organizational settings where managers make their decisions through hiring external agents.

Date: 2026
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