Social distance and delegation: Does anonymity matter?

Abstract In this paper, we report on two experimental studies that examine the impact of social distance on delegation and uncover the role of anonymity driving delegation in a principal‐agent setting. Study 1 shows that reducing the social distance makes principals less likely to delegate. Study 2 offers evidence that the likelihood of delegation is not affected by whether the principal is informed that the recipients will not find out whether the principal is their friend or a stranger. Our findings have implications for the underlying sources of pro‐sociality in organizational settings where managers make their decisions through hiring external agents.