contracts which determine their managers' salaries. One contract simply gives managers incentives to maximize firm profits …, while the second contract gives an additional sales bonus. Although theory predicts the second contract to be chosen, it is … only rarely chosen in the experimental markets. This behavior is rational given that managers do not play according to the …

from trade under Bertrand and Cournot oligopoly. Firms differentiate their products to mitigate competition, but only if …

Empirical work testing for a negative tradeoff between risk and incentives, a cornerstone of agency theory, has not had …

provision of marginal incentives, and applies the theory to explain variation in the form of compensation of over-the-road truck … of hauls in a way that is consistent with the theory. By contrast, we find that vehicle ownership, which defines a driver …

The principal-agent model of executive compensation is of central importance to the modern theory of the firm and …