Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/125101 
Year of Publication: 
2015
Series/Report no.: 
Tinbergen Institute Discussion Paper No. 15-105/VII
Publisher: 
Tinbergen Institute, Amsterdam and Rotterdam
Abstract: 
Organizations must not only take the right decisions, they must also ensure that these decisions are effectively implemented. Fama and Jensen (1983) argue that the same members of many organization are often responsible for both decision initiation and implementation. If these have social preferences, they might thus sabotage both project choices and implementation to express their discontent with the allocation of decision rights. How decisions come about also affects implementation if workers have reciprocal fairness concerns. Our experimental evidence demonstrates that the possibility to sabotage implementation leads to more delegation, but only if workers have high costs of obstructing informed decisions. We further find that the allocation of authority as such affects implementation.
Subjects: 
Delegation
Implementation
Procedural Preferences
Reciprocity
JEL: 
C91
D23
D86
L20
Document Type: 
Working Paper

Files in This Item:
File
Size
784.25 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.