EconPapers    
Economics at your fingertips  
 

The organization of expertise in the presence of communication

Flavia Roldán

No D/835, IESE Research Papers from IESE Business School

Abstract: A decision-maker has to elicit information from informed multiple experts about a policy's value. The principal may prevent communication among the agents. However, it may be in the principal's interest to allow communication among them. I assume that communication allows synergies to emerge among the experts but also opens the possibility of collusion among them. I study the optimal design of contracts, focusing on the organization of expertise in the communication phase. I show that, from the principal's point of view, when the advantage of synergies prevails over the collusion problem, communication dominates the no communication case. However, synergies will always prevail if the principal lets agents communicate with each other before they make their choices rather than after.

Keywords: information acquisition; communication; coordination; collusion; expertise; organization (search for similar items in EconPapers)
JEL-codes: D81 D82 L23 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2009-11-09
New Economics Papers: this item is included in nep-cdm and nep-cta
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.iese.edu/research/pdfs/DI-0835-E.pdf (application/pdf)

Related works:
Journal Article: The organization of expertise in the presence of communication (2013) Downloads
Working Paper: The organization of expertise in the presence of communication (2012) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebg:iesewp:d-0835

Access Statistics for this paper

More papers in IESE Research Papers from IESE Business School IESE Business School, Av Pearson 21, 08034 Barcelona, SPAIN. Contact information at EDIRC.
Bibliographic data for series maintained by Noelia Romero ().

 
Page updated 2024-02-18
Handle: RePEc:ebg:iesewp:d-0835