Modern 'principal-agent theory' has made a lot of progress in proposing theoretical Solutions to agency problems. This … evidence on offered contracts and effort choices in a simple agency game. In line with principal-agent theory we find that in … design has to regard an equity constraint that has so far been neglected by contract theory. In fact, most contract offers …

In the heterogeneous experimental oligopoly markets of this paper, sellers first choose capacities and then prices. In … setting behavior is in general consistent with the theory. Capacities converge above the Cournot level. Sellers rarely manage …