Share contracts are common in principal-agent relationships when returns are uncertain and it is costly to measure the agent's contribution. Well-known examples of these types of arrangements include sales commissions for real estate agents, contingency fees for attorneys, and cropshare...

We develop a model of contracting in which individual effort choices are subject to social pressure to conform to the average effort level of others in the same risk-sharing group. As in related models of social interactions, a change in exogenous variables or contract terms generates a social...

We develop a model of contracting in which individual effort choices are subject to social pressure to conform to the average effort level of others in the same risk-sharing group. As in related models of social interactions, a change in exogenous variables or contract terms generates a social...