Nobel for their fundamental contributions to contract theory. This article offers a short summary and discussion of their …

decline. While participating contracts embedding these guarantees are designed to share market risk across investor cohorts … on participating contracts in Germany, we find that binding guarantees reduced inter-cohort transfer by 10 basis points …

I show that deterministic dynamic contracts between a principal and an agent are always at least as profitable to the … correlation of stochastic contracts across periods that the usual restriction in the literature to deterministic contracts is …

an isomorphic loss contract. Our results show that loss contracts reduce the minimum efforts of groups and worsen …In this paper we study the effects that loss contracts - prepayments that can be clawbacked later - have on group … control sessions, incentives are formulated as a classic gain contract, while in treatment sessions, incentives are framed as …

Subjective evaluations are widely used, but call for different contracts from classical moral-hazard settings. Previous … literature shows that contracts require payments to third parties. I show that the (implicit) assumption of deterministic … contracts makes payments to third parties necessary. This paper studies incentive contracts with stochastic compensation, like …

the world influences the costs of the suppliers. Complete contracts conditioning on all future realizations of the state … complete and incomplete contracts. The key insight is that the allocation prescribed by optimal complete contracts is … sequentially optimal with incomplete contracts if the buyer does not receive too much information ex-interim. We show that the …

the presumption that a relational contract can establish a norm of reciprocity, I show that generous upfront wages that …