Real-effort experiments are frequently used when examining a response to incentives. For any particular real-effort task to be well-suited for such an exercise, subjects' cost for exerting effort must, for the range of incentives considered, result in an interior effort choice. The popular...

When organizational structures and contractual arrangements face agents with a significant risk of termination in the short term, such agents may under-invest in projects whose results would be realized only in the long term. We use NBA data to study how risk of termination in the short term...