probability distortion displayed by the agent and its degree determine whether an incentivecompatible contract can be implemented …, the strength of the incentives included in the optimal contract, and the location of incentives on the output space. Our …

optimal contract with a strikingly simple closed form — that efficiently motivate the same productive action. Because … incentives can be embedded in the measure or the contract, any distortions in one are offset by adjusting the other, which can …

communicated might matter. In a controlled field experiment, we study a minimally invasive change in the communication of a well …

, we exploit an exogenous change in the contract structure in 2003, the piece rate increasing from 20.2 to 22.9 euros. We …

This paper examines the optimal provision of incentives for contract designers. A principal hires an agent to draft a … contract that is incomplete because the ex-ante specified design might not be appropriate ex-post. The degree of contract … characterize the optimal incentive scheme for the agent and discuss implications for the degree of contract incompleteness and the …

with reflections on the future of relational contract theory and practice. …

that the principal cares for them. Principals can signal their altruism by offering a generous contract, consisting of a … agents do not reciprocate the principal's altruism, the principal may find it optimal to write a contract that simultaneously … signals his altruism and screens reciprocal worker types. I show that such a contract is characterised by excessively strong …