On the design of piece-rate contracts

We characterize the optimal piece-rate contract in the canonical moral hazard setting with a wealth-constrained, risk averse agent. The contract is shown to have a simple, intuitive characterization in a structured, but broad, class of settings.

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Year of publication:	2010
Authors:	Bose, Arup ; Pal, Debashis ; Sappington, David E.M.
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 107.2010, 3, p. 330-332
Publisher:	Elsevier
Subject:	Moral hazard Piece-rate contracts

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008494895