Kräkel, Matthias; Schöttner, Anja - 2009
employment relationships, firms may exploit workers future rents to induce excessively high effort.-- bonuses ; limited liability ….
The reason is that, in repeated employment relationships, firms may
exploit workers’ future rents to induce excessively … employment setting. Moreover, if period-1 e ff ort
would already be quite large without extension clause (i.e., ¯ ˆ ), extra …