altruism and marginal costs, and this heterogeneity is unobservable to the government. In a novel application of nonlinear … pricing methods, we theoretically characterize the optimal unrestricted contract in this screening environment with … multidimensional heterogeneity. We combine these results with the estimated model to construct the optimal contract and simulate …

enroll in a subsequent commitment contract after the original expires if they receive a nudge for a longer duration initial … contract. Our theoretical analysis of the welfare implications of these effects shows conditions under which nudges can reduce …

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 … utility, a pecuniary cost of effort, Gaussian noise or continuous time. The contract's functional form is independent of the …

-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 …