monetary gift-exchange and incentive pay, while allowing for worker heterogeneity. I assume that some, but not all, workers …. Furthermore, since some workers do not reciprocate the principal's altruism, the principal may find it optimal to write a contract … that simultaneously signals his altruism and screens reciprocal worker types. Such a contract is characterized by …

This paper studies how social relationships between managers and employees affect relational incentive contracts. To … each other. The contract may contain two types of incentives for the agent to work hard: a bonus and a threat of dismissal …

We analyze the optimal contract between a risk-averse manager and the initial shareholders in a two-period model where … second-period profit, so that it may be difficult to disentangle the incentives for these two types of effort. The contract … current effort. In the former case, at the optimal solution, the firm gives more incentive to investment effort than to period …

observable. A team incentive scheme, where each agent is paid a bonus for aggregate output above a threshold, is optimal in case …