A contract where the agent is compensated ex post only upon satisfactory performance, often called a no-cureno-pay contract, can arise as under several circumstances. In this paper, we model the problem of contractual choice as a principal-agent contract which is modified due to hidden...

This paper seeks to understand the intriguing but only sparsely explored phenomenon of "leisure time invention", where the main underlying idea for the new product or process occurs when the inventor is away from the workplace. We add to previous research by focussing on the inventive creativity...