In this experiment, we analyze strategic delegation in a Cournot duopoly. Owners can choose among two different … 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 …

observed in the experiment aim at fair surplus sharing. -- principal-agent theory ; contract theory ; fair sharing ; incentive … 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 …

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 …

Individuals frequently transfer commodities without an explicit contract or an implicit enforcement mechanism. We … design an experiment to study whether such commodity transfers can be viewed as investments based on trust and reciprocity …, or whether they rather resemble presents with distributional intentions. Our experiment essentially modifies Berg et al …

employees to accept lower wages as well? As an alternative to reviewing statistical data, we have performed an experiment with a … lower competitive wage in the second phase of an employment relationship that is known to both parties. The experiment casts …