multiplicative separability condition, the optimal mechanism offers a single contract. This condition holds, for example, when output … likelihood ratio property, the mechanism offers a single debt contract. Our results generalize if the output distribution is … “close” to multiplicatively separable. Our model suggests that offering a single contract may be optimal in environments with …

. An analyst is uncertain about what actions are available and evaluates a contract by the expected payoffs it guarantees …

, we exploit an exogenous change in the contract structure in 2003, the piece rate increasing from 20.2 to 22.9 euros. We …

specific game-theoretic models (an observable-contract game and an unobservable-contract game), we find two key results: (i …) The unobservability of a contract may increase inefficiency of the environmental conflict in terms of legal efforts …; however, (ii) the unobservability of a contract may increase the fairness of the outcome in terms of the plaintiff …

optimally offers a contract that makes the agent's utility concave in output. If the agent is risk-neutral and protected by … concavity constraint might bind for some outputs but not others. We characterize the unique profit-maximizing contract and show …