optimal incentive contract and show that, not surprisingly, these contracts depend on the accuracy of the supervisor’s signal …

efficiency, while Pigou, with some exceptions, is convinced that it is almost always socially desirable to reach marginal … efficiency through taxes or liability. It is interesting that the economist of Chicago, who has elaborated on the renowned … theorem, thinks that is not desirable to reach efficiency at the margin every time, and that it is often preferable to …

The standard explanation of wage rigidity in principal agent and in efficiency wage models is related to worker risk … experimental evidence on the employment contract shows that most workers prefer higher but more uncertain wages to lower fixed … ownership forms. By resorting to the standard efficiency wage framework, we show that, in the presence of employer moral hazard …