the relational index contract in order to improve incentives. … performance measures. We show that such an index contract may indeed be optimal if performance measures are non-verifiable so that … measurements), the optimal self-enforcing (relational) contract between a principal and a multitasking agent is an index contract …

systematically consider three major classes of incentive schemes: continuous piece rate incentives, discrete bonus schemes, and … tournament incentives. We find that pay inequality has a strong negative effect on perceived fairness. Controlling for pay …

We show that concerns for fairness may have dramatic consequences for the optimal provision of incentives in a moral … hazard context. Incentive contracts that are optimal when there are only selfish actors become inferior when some agents are … concerned about fairness. Conversely, contracts that are doomed to fail when there are only selfish actors provide powerful …

This paper quantifies a tenant-side "split incentives" problem that exists when the largest commercial sector customers … are on electricity-included property lease contracts causing them to face a marginal electricity price of zero. We use … exogenous variation in weather shocks to show that the largest firms on tenant-paid contracts use up to 14 percent less …

Subjective evaluations are widely used, but call for different contracts from traditional moral-hazard settings …. Previous literature shows that contracts require payments to third parties, which real-world contracts rarely use. I show that … the implicit assumption of deterministic contracts makes payments to third parties necessary. This paper studies …

We consider rules (strategies, commitments, contracts, or computer programs) that make behavior contingent on an …

, imprecise, and subjective information to align incentives. The first method is a procedural approach where the court applies … preponderance-of-the-evidence to determine whether the agent acted in accordance with the contract. In the second method, the court … adopts a substantive approach, treating the original contract as incomplete, thus rendering a decision based on what it …

incentives, are only found in sectors with a large environmental footprint. …

I analyze a model in which a principal offers a contract to an agent and can influence the agent’s marginal return of …