Chassang, Sylvain; Zehnder, Christian - In: Theoretical economics : TE ; an open access journal in … 11 (2016) 3, pp. 1145-1179
This paper develops a positive model of informal contracting in which rewards and punishments are not determined by an ex ante optimal plan but instead express the ex post moral sentiments of the arbitrating party. We consider a subjective performance evaluation problem in which a principal can...
