This discussion paper resulted in a publication in <I>Auditing: A Journal of Practice & Theory</I> (2013). Volume 32(1), pages 1-31.<P> Contract audits aimed at reducing information asymmetry and transaction costs are frequently used in imperfect markets such as defense procurement. This contradicts...</p></i>

This discussion paper resulted in a publication in the 'Journal of Economics and Management Strategy', forthcoming.<P> Distorted performance measures in compensation contracts elicit suboptimal behavioral responses that may even prove to be dysfunctional (gaming). This paper applies the empirical...</p>