Principals make decisions on various issues, ranging from contract design to control system implementation. Few studies examine the principal’s active role in these decisions. We experimentally investigate this role by studying how a principal’s choice for a truth-telling incentive contract,...

Principals make decisions on various issues, ranging from contract design to control system implementation. Few studies examine the principal's active role in these decisions. We experimentally investigate this role by studying how a principal's choice for a truth-telling incentive contract,...

Using a lab experiment, we investigate how internal transparency affects the tendency of employees to initiate collusive efforts with colleagues from other departments in an organization. Building on behavioral economics theory, we argue that employees who are treated unkindly by their managers...