While monetary rewards have been widely used by online platforms to motivate user-generated content (UGC) contributions, users may not demonstrate the expected behaviors. Unintended consequences, exemplified by unchanged or reduced UGC contributions, may occur. Through two natural experiments,...

We introduce uncertainty into Holmstrom and Milgrom (1987) to study optimal long-term contracting with learning. In a dynamic relationship, the agent's shirking not only reduces current performance but also increases the agent's information rent due to the persistent belief manipulation effect....

Measured as yield spreads against AAA corporate bonds, the convenience premium for agency MBS averaged 47 basis points between 1995 and 2021, about half of the long-term-Treasury convenience premium. Both the MBS convenience premium and the issuance amount vary negatively with the mortgage rate,...