  A principal delegates decisions to a biased agent. Payoffs depend on a state
that the principal cannot observe. Initially, the agent does not observe the
state, but he can acquire information about it at a cost. We characterize the
principal's optimal delegation set. This set features a cap on high decisions
and a gap around the agent's ex ante favorite decision. It may even induce
ex-post Pareto-dominated decisions. Under certain conditions on the cost of
information acquisition, we show that the principal prefers delegating to an
agent with a small bias than to an unbiased agent.
