This paper examines the effect of imperfect labor market competition on the efficiency of compensation schemes in a setting with moral hazard and risk-averse agents, who have private information on their productivity. Two vertically differentiated firms compete for agents by offering contracts...

We analyze a principal agent model with hidden action, limited liability and truth-telling constraints under the assumption that the principal has private information. We focus on whether the principal should reveal his private information to the agent. On the one hand, revelation allows to...

This paper examines the effect of imperfect labor market competition on the efficiency of compensation schemes in a setting with moral hazard, private information and risk-averse agents. Two vertically differentiated firms compete for agents by offering contracts with fixed and variable...