This paper analyzes a dynamic moral hazard problem in which the agent's unobservable effort in each period affects both current and future cash flows. For incentive contracting purposes, the principal can rely on realized and projected future cash flows. We find that a properly structured...

This paper models management consultants' decisions about the order of client engagements when the consultant reduces clients' costs. The consultant can either immediately spread the innovation to all clients or sequentially spread the innovation to one client at a time. Licensing agreements,...

We consider the design of contracts in a principal-agent setting with two agents where each agent privately observes and reports to the principal a signal regarding the actions taken. We consider two cases: one where the agents observe the same signal and one where the agents observe different...