Delegation of learning from multiple sources of information

Diamantopoulos, Angelos; Nikandrova, Arina

Abstract

A principal delegates a decision to a biased expert. Before taking the decision, the expert may undertake incremental learning about the unknown binary state from two alternative information sources. There are no transfers but the principal retains the right to terminate the expert’s learning to take the decision herself. The right to terminate learning benefits the principal when the preferences of the principal and the expert are sufficiently misaligned but may be detrimental when the preferences are sufficiently closely aligned.

Citation

Diamantopoulos, A., & Nikandrova, A. (2025). Delegation of learning from multiple sources of information. European Economic Review, 173, Article 104981. https://doi.org/10.1016/j.euroecorev.2025.104981

• Journal Article Type: Article
• Acceptance Date: Jan 29, 2025
• Publication Date: Feb 12, 2025
• Deposit Date: Feb 15, 2025
• Publicly Available Date: Feb 15, 2025
• Journal: European Economic Review
• Print ISSN: 0014-2921
• Electronic ISSN: 1873-572X
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 173
• Article Number: 104981
• DOI: https://doi.org/10.1016/j.euroecorev.2025.104981
• Keywords: Delegation of learning, Poisson process, Learning in continuous time
• Publisher URL: https://www.sciencedirect.com/science/article/pii/S0014292125000315