We show experimentally that fairness concerns may have a decisive impact on the actual and optimal choice of contracts … and predominantly choose the bonus contracts. Our results are consistent with recently developed theories of fairness …, which offer important new insights into the interaction of contract choices, fairness and incentives. …

We show that concerns for fairness may have dramatic consequences for the optimal provision of incentives in a moral … concerned about fairness. Conversely, contracts that are doomed to fail when there are only selfish actors provide powerful …

We show experimentally that fairness concerns may have a decisive impact on both the actual and the optimal choice of … inferior when some agents value fairness. Conversely, implicit bonus contracts that are doomed to fail among purely selfish … recently developed theories of fairness, which also offer interesting new insights into the interaction of contract choices …