-existence of multiple contracts, often in adjoining plots of land and (2) the choice of a share-cropping contract because a share … contract being analogous to a proportional tax, is supposed to distort incentives and lead to sub-optimal use of inputs into …, share and rent and chooses a contract so as to maximize her own pay-off. We show that under certain realistic assumptions (1 …

). New contract language also includes dispute resolution provisions (e.g., jury waivers, forum selection clauses) that are …

inefficiency. We consider the case where the type of the principal is endogenous to contract provisions and reneging by the … show that the general contract derived nests the usual textbook contract when TPE is strong; weak TPE on the other hand … prevents the power of the contract to equal one even when the agent is risk-neutral, thus, rendering a fixed-rent contract sub-optimal. …

This paper presents a novel theory of corruption in public procurement. It considers an agency setting of contract … execution where the principal is a politician who can commit to a contract auditing policy. It is found that a benevolent … politician, by choosing a sufficiently strict auditing, deters the contracting firm from padding costs, conversely, a selfish …

seller's valuation and the buyer's valuation, and the buyer evaluates each contract according to its worst-case performance … over a set of probability distributions. This paper demonstrates that the contract that maximizes the minimum payoff over … contract for any given probability distribution is a posted price, which induces bunching. Using the e-contamination model …

constraints ensuring that trading partners do not breach contracts unduly. Whether a long-term contract is enforceable does not … optimal contract would remain stationary, non-stationarity might arise under asymmetric information. Enforcement constraints … at high prices at the beginning of the relationship before breaching the contract later on. Yet, such take …

's effort is unobservable to the firm), we show that the optimal contract has an extreme convex form in which a bonus is … unobservable to the salesperson), we show that the optimal contract is smoother as it involves positive compensation for … hurt the agent; in fact, under certain conditions, the contract is concave in sales. We also determine conditions under …

We study an optimal long-term labor contract that provides disability insurance benefits under two frictions: the agent … cannot commit to a long-term contract and the disability shock is private information. We predict that a job with a high risk … contract can be implemented under a three-account trading system in which mandatory savings can be imposed to discourage a …

derive the optimal contract for both experimentation and production when the agent has private information about his … asymmetric information is endogenously determined by the length of the experimentation stage. An optimal contract uses the length …

limited liability. It is shown that a simple share-or-nothing with bonus contract (SonBo for short) is optimal and implements … liability. No other contract can do better than SonBo. SonBo contracts have one degree of freedom, which is useful in dealing … with heterogeneous circumstances while still maintaining consistency in contracting. Between the two instruments of SonBo …