Arvan, Lanny; Esfahani, Hadi Salehi - In: International Economic Review 34 (1993) 3, pp. 503-24
We consider performance contracts with firm private information. The verifiable components of the contract, an up-front wage and employment, may serve both as a signal and a performance incentive. Job rent may be necessary for signaling and, since efficient signaling is multidimensional, there...