We characterize optimal contracts in a dynamic principal–agent model of joint production in which project opportunities are heterogenous, utility from these projects is nontransferable, and the agent has the option to quit the relationship at any time. To demand the production of projects that...

In standard models of experimentation, the costs of project development consist of (a) the direct cost of running trials as well as (b) the implicit opportunity cost of leaving alternative projects idle. Another natural type of experimentation cost, the cost of holding on to the option of...

When campaigning for reelection, incumbent parties' promises to voters are constrained by their records in office, while opposition parties can use their time away from power to develop new platforms. In this paper, I introduce incumbent policy persistence in a dynamic game of electoral...