Principals seek to trade with agents by posting incentive contracts in a search environment. A contract solves the ex …

this environment, I study a direct mechanism and characterize an optimal contract. Additionally, I compare the allocation …

contract renegotiation is a powerful tool for incentive provision, despite the stationarity of the environment. Continuation …

optimally offers a contract that makes the agent's utility concave in output. If the agent is risk-neutral and protected by … concavity constraint might bind for some outputs but not others. We characterize the unique profit-maximizing contract and show …

We study a retailer's sourcing contract when the supplier's reservation profit (offered by his outside options) depends … supplier's marginal reservation profit. In this case, the optimal contract quantities maximize the supply chain profits for the … contract. Observations from our analysis contrast with those derived from previous studies, complementing the theory of …