employee’s performance was poor. The justification assures the employee that the manager has not distorted the evaluation …? Suppose a manager’s evaluation is private information. Justifying her evaluation is costly but limits the principal’s scope … for distorting her evaluation of the employee. I show that the manager justifies her evaluation if and only if the …

evaluation indicates bad performance. The justification assures the agent that the principal has not distorted the evaluation …Should principals explain and justify their evaluations? Suppose the principal’s evaluation is private information, but … she can provide justification by sending a costly cheap-talk message. If she does not provide justification, her message …

I analyze a model in which a principal offers a contract to an agent and can influence the agent's marginal return of …

. Furthermore, since some workers do not reciprocate the principal's altruism, the principal may find it optimal to write a contract … that simultaneously signals his altruism and screens reciprocal worker types. Such a contract is characterized by …

This paper analyses bargaining over an incentive compatible contract in a moral hazard framework. We introduce the … bargaining power, the contract in the Kalai-Smorodinsky solution yields a more efficient outcome and induces more effort. The …

in quantity and quality of output. We use data from a controlled field experiment that changed the communication of the …