We might receive below error while using impersonation in Web API call.
{\r\n \”error\”:{\r\n \”code\”:\”\”,\”message\”:\”User does not have the privilege to act on behalf another user.\”,\”innererror\”:{\r\n \”message\”:\”User does not have the privilege to act on behalf another user.\”,\”type\”:

Impersonation in Web API
http://www.inogic.com/blog/2016/02/impersonation-available-using-web-api-in-dynamics-crm-2016/
This error can occur in a scenario when User A is trying to impersonate User B, but user A doesn’t have “Act on Behalf of Another User” privilege.

Below article nicely explains it
Hope it helps..
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