the presumption that a relational contract can establish a norm of reciprocity, I show that generous upfront wages that … the employer’s commitment which is generally determined by her future profits. Moreover, since future profits are affected … by the employee’s reciprocal preferences, the norm of reciprocity already shapes the incentive system at the beginning of …

control sessions, incentives are formulated as a classic gain contract, while in treatment sessions, incentives are framed as … an isomorphic loss contract. Our results show that loss contracts reduce the minimum efforts of groups and worsen …

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

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