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We study a repeated principal-agent model with transferable utility, where the principal's evaluation of the agent's performance is subjective. Our focus is on equilibria which are robust to the addition of small privately observed shocks to the payoffs. Existing constructions of positive-effort...
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The objective of this paper is to test whether broiler processors, after observing their contract growers' abilities in … the second strategy would generate a ratchet effect. We test these hypotheses by using the broiler contract production …
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. Using a unique dataset on S&P 500 CEO employment contracts during 1993-2005, I find that acquirers with a CEO contract … performance, and undertake riskier deals than acquirers without a contract. Further investigation of individual contract … provisions reveals substantial heterogeneity. Specifically, the fixed term rather than at will contract, longer contract duration …
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