Decentralizing information boosts efficiency and empowers agents in decision-making.
The article explores how sharing or withholding information affects decision-making efficiency. When a boss's choices reveal private details to employees, they might make bad decisions to motivate them. It's better to make the best choices upfront or give info to employees if their goals align. In a model with two teams needing to coordinate, it's best not to micromanage but let them choose tasks themselves. This goes against the idea that sharing info with the boss is always best. But if bad outcomes are rare, it can be better to keep employees in the dark and allow some flexibility in decision-making.