Demougin, Dominique; Fluet, Claude; Helm, Carsten - In: Canadian Journal of Economics 39 (2006) 2, pp. 399-413
We analyse a two-task work environment with risk-neutral but inequality averse individuals. For the agent employed in task 2 effort is verifiable, while in task 1 it is not. Accordingly, agent 1 receives an incentive contract that, owing to his wealth constraint, leads to a rent that the other...
