Econometric Society 57th European Meeting
25th August 2002 - 28th August 2002, Venice, Italy

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TRANSFERABLE CONTROL


Category: Economic Theory
Corporate Governance
Tuesday 27th August 2002, 14:30 - 16:00, Room: 4.1
Session Chair(s): Daniel Krähmer, Social Science Research Center Berlin (WZB), GERMANY

Presenter(s): Rey, Patrick

Co-Author(s): Aghion, Philippe and Dewatripont, Mathias

Keyword(s): Control Rights, Information, Learning, Organization, Reputation

JEL(s): D23, D82, D83, L14, L23

Abstract:

This paper investigates contracting situations where control cannot be allocated contractually but transferred, if in the interest of the individual initially in charge. One party may for example transfer control to allow another party to build a reputation regarding her willingness to cooperate. Transferable control can be related to formal and real authority: control is transferable when for example formal authority can be contracted upon but the information needed to "really" exercise authority cannot.


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Paper Reference Number: 1595

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57th European Meeting
25th August 2002 - 28th August 2002, Venice, Italy

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