. 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 …

We examine commonly observed forms of payment, such as milestones, royalties, or consulting contracts as ways of …, royalties are not optimal unless the licensing firm is risk averse. The model also predicts the use of consulting contracts … which improve the firm's ability to monitor inventor effort. Because these contracts increase the firm's expected profits …

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 …

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 …

form for short hauls -- hauls for which quasi-rents are particularly small. Contracts' role as protectors of quasi …

This paper extends the existing theory and empirical investigation of unitization contracts. It highlights the …-term contracts. We argue that only if the parties to a unitization contract have unit production shares that are the same as their …

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 …