Governments often contract with private firms to provide public services such as health care and education. To decrease …

's incentive contract provides a typical physician an increase, at the margin, of $0.10 in income for each $1.00 reduction in …

-term contracts. We argue that only if the parties to a unitization contract have unit production shares that are the same as their … cost shares will the contract be incentive compatible. Using a data base of sixty unit operating agreements, we measure the … desirable contract rules for avoiding moral hazard. It also shows how the effects of those rules can be replicated in difficult …

procedures. A noisy signal, however, means that the optimal contract will involve terms that courts might view as punitive and so …