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We show that concerns for fairness may have dramatic consequences for the optimal provision of incentives in a moral hazard context. Incentive contracts that are optimal when there are only selfish actors become inferior when some agents are concerned about fairness. Conversely, contracts that...
Persistent link: https://www.econbiz.de/10014460980
contracts in a moral hazard context. Explicit incentive contracts that are optimal according to self-interest theory become …
Persistent link: https://www.econbiz.de/10002166534