We develop a new approach to quantify how patients respond to dynamic incentives in health insurance contracts with a … contracts reset at the beginning of the year, and cost-sharing limits change over the years. Using rich claims-level data from a …

We present a wage-hours contract designed to minimize costly job turnover given investments in on the job training …

analytically solve for the optimal contract when the agent has exponential utility. We find that the Pareto frontier shifts out as …

on fruit pickers paid under two distinct compensation contracts: a standard piece rate plan and a piece rate plan with an … extra one-time bonus tied to output. Under the bonus contract, we observe bunching of performance just above the bonus … workers gain experience. At the same time, the bonus contract induces considerable learning-by-doing for workers throughout …

This paper studies the design of optimal contracts in dynamic environments where agents learn by doing. We derive a … condition under which contracts are fully incentive compatible. A closed-form solution is obtained when agents have CARA utility …

We devise an experiment to explore the effect of different degrees of competition on optimal contracts in a hidden … can select one of three agents, while in a third treatment an agent may choose between the contract menus offered by two … correspondence between the theoretical predictions and the contract menus actually chosen in each treatment. There is, however, a …

Recent theoretical research has identified many ways how contracts can be used as rent seeking devices vis-à-vis third … and players sign binding contracts which are, however, frequently renegotiated when other clubs (entrants) want to hire … the player. Because they weaken entrants in renegotiations, long term contracts are useful rent seeking devices for the …

This paper offers a contract-based theory to explain the determination of standard hours, overtime hours and overtime … premium pay. We expand on the wage contract literature that emphasises the role of firm-specific human capital and that … explores problems of contract efficiency in the face of information asymmetries between the firm and the worker. We first …