procedures. A noisy signal, however, means that the optimal contract will involve terms that courts might view as punitive and so …

rate and time taken in a procurement setting, characterizing the efficient contract design. Using new micro-level data on …

In this paper I explore optimal employment contract design in a random search framework, where workers search on and … unobserved by the firm and cannot be directly contracted upon. Firms differ in productivity by which they employ workers. Firms …

Two parties sign a contract but before they fully perform they modify the contract. Should courts enforce the modified … to write a contract that is robust to hold-up or that makes the facts relevant to modification verifiable. But … contract technology, e.g., the use of liquidated damages, to ensure commitment are disfavored by courts and subject to …

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 …