with moral hazard. The optimal contract displays systematic distortions in information acquisition. Due to a rent effect …

without expost outside options, the optimal contract is static and conditions only on the agent's aggregate final information …

If a seller delivers a good non-conforming to contract, European and US warranty law allows consumers to choose between … use non-conformity as a pretext for getting rid of a contract he no longer wants. We show that this possibility of …

be implemented even if the supervisor's preferences are unknown. The corresponding optimal contract is similar to what we …

In this paper, firms engage in rent seeking in order to be assigned a governmental contract. We analyze how a change in … the contract length affects the firms' rent-seeking behavior. A longer contract leads to more rent seeking at a contract … assignment stage, as the firms value the contract higher. On the other hand, the contract has to be assigned less often, which of …

market. Thus, the business group's organizational mode and the financial structure allow a self-enforcing contract to be …

A setting of reliance investments is explored where one of the parties to a contract obtains private information … difficult task to award expectation damages corrrectly to a party with private information who sufffers from breach of contract …

In this paper, we consider a symmetric rent-seeking contest, where employees lobby for a governmental contract on … behalf of firms. The only verifiable information is which firm is assigned the contract. We derive the optimal wage contracts … of the employees and analyze, whether commitment by determining the wage contract prior to the competitor is profitable …

principle, the optimal contract under non-verifiability is derived by employing the theory of communication equilibrium. …