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Economic theorists have devoted considerable attention to analyzing models of closely related incentive contracting problems that arise in the study of public procurement, private procurement, regulation, the theory of the firm, the theory of organizations, and managerial compensation. The...
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hazard context. Incentive contracts that are optimal when there are only selfish actors become inferior when some agents are … concerned about fairness. Conversely, contracts that are doomed to fail when there are only selfish actors provide powerful … why many contracts are left deliberately incomplete. …
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