the terms of the contract. However, in contrast with economic predictions, we find that agents (i) reject 'unfair … contracts' and that (ii) given acceptance, their effort choices are to some extent driven by reciprocity. It seems that contract … design has to regard an equity constraint that has so far been neglected by contract theory. In fact, most contract offers …

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 …

two period game, involving the choke of the contract; length by the principal and an investment choke by the agent. In … contrast to the game theoretic predictions, we find that investment of the worker and length of contract; are strictly … although the model is fully deterministic. This could imply a behaviorally relevant difference between contract and market …