selection model with dynamic contracting. We then analyze the performance of the optimal contract with respect to various useful … the sequence of events is as follows. In a period, t, the supplier offers a contract to the retailer, and the retailer … excess inventory (we assume a lost sales model) to the next period. In period t 1, the supplier designs a new contract based …

This paper identifies a class of multiperiod agency problems in which the optimal contract is tractable (attainable in … closed form). By modeling the noise before the action in each period, we force the contract to provide sufficient incentives … simple solution to the contracting problem. Our results continue to hold in continuous time, where noise and actions are …

-sided asymmetric information on performance that allows for an arbitrary information structure. Two generic contract forms are studied …. An authority contract has the Principal reveal his information before the Agent responds with her information. Under such … a contract, the Agent's compensation varies only with the Principal's information, while her information is used to …

the optimal contract and analyze how it changes with informativeness. We consider a standard agency model with risk …-neutrality and limited liability, where the optimal contract is a call option. The direct effect of reducing signal volatility is a …

efficiency is not attainable. We show that contracts involving mutual control might sometimes be superior to the best contract …

re-negotiated. Foreseeing this, the parties to the contract will write one that is renegotiation-proof. Under such a … contract, nominal shocks affect real consumption. Since the argument should apply in many situations, it will have …

We estimate the impact of venture capital (VC) contract terms on startup outcomes and the split of value between the … new, large data set of first financing rounds of startup companies. Consistent with efficient contracting theories, there … power to receive more investor-friendly terms compared to the contract that maximizes startup values. Better VCs still …