control sessions, incentives are formulated as a classic gain contract, while in treatment sessions, incentives are framed as … an isomorphic loss contract. Our results show that loss contracts reduce the minimum efforts of groups and worsen …

We present a simple classroom principal-agent experiment that can effectively be used as a teaching device to introduce … design a contract that consists of a fixed payment and an incentive component. In the second part, students take the role of … agents and decide on an effort level. The experiment can be used to introduce students to the concepts of efficiency …