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We allow for principals to self-select into delegating, or not, the allocation decision to an agent in a modified dictator game. The standard dictator game arises when principal´s choose to make the allocation decision themselves. Dictators thus obtained transfer lower amounts to receivers, relative to when the decision making is passed to an agent under delegation (or in the standard dictator game). Principals choose to be a dictator nearly half of the time. The average amount transferred by individuals who delegate in more than half of the rounds is significantly higher than the quantity transferred by those who choose to delegate in less than half of the rounds. Finally, the distributional consequences of delegating, or not, vary with less inequality obtained when the decision is delegated.


ESI Working Paper 19-22

Formerly titled, "Deciding to Delegate: On Distributional Consequences of Endogenous Delegation".



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