information. This strategy affects the properties of the optimal contract, which grows closer to the first best. This research … provides insights into the implications of mentalizing for agency theory. …

multiplicative separability condition, the optimal mechanism offers a single contract. This condition holds, for example, when output … likelihood ratio property, the mechanism offers a single debt contract. Our results generalize if the output distribution is … “close” to multiplicatively separable. Our model suggests that offering a single contract may be optimal in environments with …

principle, the optimal contract under non-verifiability is derived by employing the theory of communication equilibrium. …

with reflections on the future of relational contract theory and practice. …

We analyze the incentives for information disclosure in financial markets. We show that borrowers may have incentives … incentives for information disclosure and have ambiguous ex-ante effects. …