setting, our differential equation for the continuous-time model allows us to compute contracts easily, as well as compute …

an asset that has greater value if owned by the principal than by the agent. When contracts can be renegotiated, a well … renegotiation. We show that option contracts will achieve the first best whenever this threat-point effect dominates the holdup …

's effort is not observable, and to induce the agent to work, second-best contracts do not insure the worker fully. They do … eliminate all nominal risk for the parties (by fully indexing the terms of the contracts to the price level) but they would be …

long-term investments, which militiates for long-term debt contracts. The second problem is to monitor the investor's use …-term debt, including the possibility of multiple contracts and of priority rules …

. This paper describes and assesses the various forms of incentive contracts …

Tournaments, reward structures based on rank order, are compared with individual contracts in a model with one risk … absence of a common shock, using optimal independent contracts dominates using the optimal tournament. Conversely, if the … contracts. Finally, it is shown that for a sufficiently large number of agents, a principal who cannot observe the common shock …

likely to be improved by a contractual arrangement that could be agreed upon in advance. In such contracts various aspects of … studies contracts of this nature. We examine the feasibility of implementing various agreements and the nature of optimal … bilateral contracts under these informational circumstances. When the random influences impact both parties significantly, full …

We examine how the U.S. Federal Government governs R&D contracts with private-sector firms. The government chooses … discretion over, and monitoring of, project progress. Using novel data on R&D contracts and on the geo-location and technical …

Deadlines and penalties are widely used to incentivize effort. We model how these incentive contracts affect the work … Minnesota highway construction contracts that includes day-by-day information on work plans, hours actually worked and delays …