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 …

choice is more accurate than a noisy public performance measure. For some contingencies the optimal contract has to specify … the loss from termination is small. Under an optimal contract the agent's wage may depend only on the principal's report … and not on the public signal. Nonetheless, public information is valuable as it facilitates truthful subjective evaluation …

Nobel for their fundamental contributions to contract theory. This article offers a short summary and discussion of their …

investigates this strategic use of vagueness in voluntary disclosure and asks whether there is scope for policy to improve … sophistication. Imposing precise disclosure leads to more easily interpretable messages, but results in fewer sender types disclosing … at all. Since non- disclosure also systematically misleads naive receivers, the welfare implications of imposing …

the presumption that a relational contract can establish a norm of reciprocity, I show that generous upfront wages that …

relationship is lower than it actually is. To induce truth-telling, the optimal relational contract may introduce distortions after …

This paper analyzes the optimal contract for a consumer to procure a credence good from an expert when (i) the expert … payments on him. We characterize payments under the optimal contract and show that, compared with the first-best, these induce …

objective outcome but only the consumerś report, or subjective evaluation. A failure of the low-cost treatment delays the …