In this paper, firms engage in rent seeking in order to be assigned a governmental contract. We analyze how a change in the contract length affects the firms' rent-seeking behavior. A longer contract leads to more rent seeking at a contract assignment stage, as the firms value the contract...

The property-rights approach to the theory of the firm is extended by introducing distorted signals of the parties.investments. Investment incentives are then given in two ways, by allocating ownership rights and by tying pay to the signal realization. Optimal incentive strength, that is, the...

In this paper, a promotion tournament is considered, where, at the beginning of the tournament, it is unknown how long the tournament lasts. Further, the promotion decision is based on the assessments of a supervisor with imperfect recall. In line with psychological research, the supervisor is...