Cabrales, Antonio; Charness, Gary - Department of Economics and Business, Universitat … - 2000
It has long been standard in agency theory to search for incentive-compatible mechanisms on the assumption that people … that it may be useful to consider nonpecuniary utility in mechanism design and contract theory. Accordingly, we devise an … experiment to explore optimal contracts in an adverse-selection context. A principal proposes one of three contract menus, each …