Principal Agent
The Insubordinate General
The Insubordinate General is a Principal Agent scenario. The core lesson: Delegated authority only works if the person who delegated it is willing to enforce the boundaries when an agent oversteps them. You lead a country whose most celebrated military commander has just published a letter publicly contradicting your official war strategy, in front of the legislature and the press. He has battlefield successes the public adores, and firing him will almost certainly be wildly unpopular. DecisionPlay maps the players, payoffs, and equilibrium dynamics that shape how this situation typically resolves.
The situation
You lead a country whose most celebrated military commander has just published a letter publicly contradicting your official war strategy, in front of the legislature and the press. He has battlefield successes the public adores, and firing him will almost certainly be wildly unpopular. Your advisors are split: some argue firing him is the only way to preserve civilian authority over the military, others warn it will look like punishing your best general for winning too much, and cost you politically for the rest of your term.
Background
You gave this commander wide authority because of his experience and expertise, trusting him to execute your strategy in the field. He has started pursuing his own preferred approach instead, publicly, and every day you do not respond looks like tacit permission for him to keep doing it.
What this reveals
Delegated authority is only real if it can be revoked
A principal who delegates authority but never enforces its limits is effectively handing that authority away for good, since any agent who correctly predicts there will be no consequence for overstepping has no reason to stay within the original boundaries.
How to counter it: When you delegate something important, decide in advance what you will do if the person you delegated to exceeds the boundaries you set, and be prepared to actually do it even when enforcement is costly.
A question to sit with
Have you ever delegated authority to someone who later exceeded what you intended? What made it hard, or easy, to pull that authority back?
Frequently asked questions
- What game theory concept does The Insubordinate General illustrate?
- The Insubordinate General illustrates Principal Agent. Delegated authority only works if the person who delegated it is willing to enforce the boundaries when an agent oversteps them.
- What is the situation in The Insubordinate General?
- You lead a country whose most celebrated military commander has just published a letter publicly contradicting your official war strategy, in front of the legislature and the press. He has battlefield successes the public adores, and firing him will almost certainly be wildly unpopular. Your advisors are split: some argue firing him is the only way to preserve civilian authority over the military, others warn it will look like punishing your best general for winning too much, and cost you politically for the rest of your term.
- What does The Insubordinate General reveal about how people decide?
- Delegated authority is only real if it can be revoked. A principal who delegates authority but never enforces its limits is effectively handing that authority away for good, since any agent who correctly predicts there will be no consequence for overstepping has no reason to stay within the original boundaries.
- How do you avoid the trap in The Insubordinate General?
- When you delegate something important, decide in advance what you will do if the person you delegated to exceeds the boundaries you set, and be prepared to actually do it even when enforcement is costly.
- What is the research behind The Insubordinate General?
- You gave this commander wide authority because of his experience and expertise, trusting him to execute your strategy in the field. He has started pursuing his own preferred approach instead, publicly, and every day you do not respond looks like tacit permission for him to keep doing it.
- How long does The Insubordinate General take to play?
- About 6 min, at core difficulty, across 3 decision points. It runs in your browser with no account and no sign-in.
Keep exploring
More Historical Perspective scenarios, or browse all scenarios. New to this? Start with how DecisionPlay works or the game theory glossary.
Topics: principal-agent, chain-of-command, delegation, history