relational contract could establish cooperation through peer monitoring even under relative performance evaluation, which …

In this paper, we show that whenever the agent's outside option is nonzero, the optimal contract in the continuous …. The agent is then asked to resume effort, and the contract continues. We show that a nonzero agent's outside option arises …

We consider a single-principal/multi-agent model to investigate the principal's preferences over delegated contracting …. We consider full-commitment contracts, i.e., the principal is assured that his contract for each agent is implemented …, and analyze the principal's delegation choice to authorize a senior agent to contract with a junior agent based on reports …

, we exploit an exogenous change in the contract structure in 2003, the piece rate increasing from 20.2 to 22.9 euros. We …

maximizing contracts in dynamic principal-agent models. The FO-approach works when the resulting FO-optimal contract satisfies a …-optimal contract if the frequency of interactions is sufficiently high (or equivalently if the discount factor, time horizon and …

preponderance-of-the-evidence to determine whether the agent acted in accordance with the contract. In the second method, the court … adopts a substantive approach, treating the original contract as incomplete, thus rendering a decision based on what it … believes the parties would have agreed upon had they been able to complete the contract ahead of time. From an efficiency …

This paper examines the optimal provision of incentives for contract designers. A principal hires an agent to draft a … contract that is incomplete because the ex-ante specified design might not be appropriate ex-post. The degree of contract … characterize the optimal incentive scheme for the agent and discuss implications for the degree of contract incompleteness and the …

this environment, I study a direct mechanism and characterize an optimal contract. Additionally, I compare the allocation …

with reflections on the future of relational contract theory and practice. …