Sales contracts emerge when a principal and an agent in amoral hazard environment cannot prevent themselves from renegotiating their contract. The renegotiation occurs after the agent chooses his unobservable effort, but before its consequences are realized. Unlike previous analyses, a contract...

Contracts adopted with later renegotiation in mind may take simple forms. In a principal-agent model, if renegotiation may occur after the agent chooses efforet, the principal protects against unfavorable renegotiation by "selling the project" to the agent via a sales contract. If only singleton...

How does the environment of an organization inuence whether workersvoluntarily provide eort? We study the power relationship betweena non-prot unit (e.g. university department, NGO, healthtrust), where workers care about the result of their work, and a bu-reaucrat, who supplies some input to the...

If a previously unpaid activity (donating blood) is paid then we often observe that this activity is reduced. In this paper, it is hypothesised that the price offered is taken as a proxy for the "market value" of the activity. Depending on how the actor valued the activity previously,...

Governments often provide their citizens with goods and services that are also supplied in markets: education, housing, nutritional assistance, etc. We analyze the political economy of the public provision of private goods when individuals care about their social image. We show that image...

This paper shows that the public provision of private goods may be justified on pure efficiency grounds in an environment where individuals have relative consumption concerns. By providing private goods, governments directly intervene in the consumption structure, and thereby have an instrument...

I study the welfare optimal allocation of a number of identical and indivisible objects to a set of heterogeneous risk-neutral agents under the hypothesis that money is not available. Agents have independent private values, which represent the maximum time that they are willing to wait in line...

We study the behavior of football (soccer) agents in the German Bundesliga. Referees are requested to act as impartial agents. However, they may be tempted to allocate benefits and rewards in a biased way. Agency theory has long neglected this form of malfeasance of economic agents,but has...

We analyze how agents' present bias affects optimal contracting in an infinite-horizon employment setting. The principal maximizes profits by offering a menu of contracts to naive agents: a virtual contract - which agents plan to choose in the future - and a real contract which they end up...

Pay What You Want (PWYW) and Name Your Own Price (NYOP) are customer driven pricing mechanisms that give customers (some) pricing power. Both have been used in service industries with high fixed costs to price discriminate without setting a reference price. Their participatory and innovative...