This paper studies how altruism between managers and employees affects relational incentive contracts. To this end we …

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 …

This article studies the design of optimal mechanisms to regulate entry in natural oligopoly markets, assuming the …