A central insight of agency theory is that when a principal offers a contract to a privately informed agent, the … report about an experiment with 508 participants designed to test whether this fundamental trade-off is actually relevant. In … particular, we investigate settings with both exogenous and endogenous information structures. We find that theory is indeed a …

cornerstone of contract theory. We have conducted an experiment with 720 participants to explore whether the theoretical insights … are reflected by the behavior of subjects in the laboratory and to what extent deviations from standard theory can be … agency theory is indeed useful to qualitatively predict how variations in the degree of uncertainty affect subjects' behavior …

yielding equilibria exhibiting various degrees of inefficiencies and fraud. The variety of results has fostered the impression …

democracies. The incumbent can prevent credible challengers from running, organize vote fraud, or even physically eliminate the …

performance incentives, on behavior of care providers filing applications for providing long-term care services to patients. We … present evidence from a large-scale field experiment in the Dutch market for long-term care. We find that increasing the … degree of control reduces the number of applications and that introducing performance incentives reduces this even further …

, the model offers an explanation for motivational crowding out: Control systems and pecuniary incentives may erode morale …

We provide evidence on the match between firms, managers and incentives using a new survey designed for this purpose … implicit incentives they face and on the firms they work for. We model a market for managerial talent where both firms and …

, and local development objectives of technology license offices. Royalty incentives work both by raising faculty effort and … sorting scientists across universities. The effect of incentives works primarily by increasing the quality (value) rather than …