Kräkel, Matthias; Schöttner, Anja - 2009
rents to induce excessively high e ff ort.
Key Words: bonuses; limited liability; minimum wages
JEL Classification: D82; D86 … latter
problem has been highlighted by contract-theoretic models analyzing moral-
hazard problems under limited liability … or limited liability, they usually earn positive rents under an
incentive contract. These rents raise the principal …