In this paper we consider a model where a risk-neutral principal devises a contract for a risk neutral agent who can exert effort along different dimensions. On the top of that the agent possesses multidimensional private information about her cost of effort. We show that as long as effort is...

I replace the assumption of individual optimization, common in economic literature, by an assumption that an individual executes a computational algorithm directed at finding the choice that is good at the time the choice is made. The general properties of such algorithm are studied

This paper develops a theoretical framework for analyzing incentive schemes under bounded rationality. It starts from a standard principal-agent model and then superimposes an assumption of boundedly rational behavior on the part of the agent. Boundedly rational behavior is modeled as an...