, too late. Commitment to wages by competing firms mitigates these inefficiencies. In that case, the optimal contract …

contract in which the principal fixes a set of prizes to be allocated to the agents, is optimal. By using a contest, the …

Learning is crucial to organizational decision making but often needs to be delegated. We examine a dynamic delegation … delegation as a dynamic mechanism design problem and characterize the optimal delegation scheme. We show that private learning … discuss implications on learning delegation for distinct organizations. …

multiplicative separability condition, the optimal mechanism offers a single contract. This condition holds, for example, when output … likelihood ratio property, the mechanism offers a single debt contract. Our results generalize if the output distribution is … "close" to multiplicatively separable. Our model suggests that offering a single contract may be optimal in environments with …

maximizing contracts in dynamic principal-agent models. The FO-approach works when the resulting FO-optimal contract satisfies a …-optimal contract if the frequency of interactions is sufficiently high (or equivalently if the discount factor, time horizon and …

to an NPV criterion can occur on the path of the contract. As past performance increases, the firm chooses projects which … efficiently, and project choice depends more on the NPV and less on the incentive costs. I implement the optimal contract with an …