We estimate the impact of venture capital (VC) contract terms on startup outcomes and the split of value between the … power to receive more investor-friendly terms compared to the contract that maximizes startup values. Better VCs still …

Tournaments, reward structures based on rank order, are compared with individual contracts in a model with one risk … absence of a common shock, using optimal independent contracts dominates using the optimal tournament. Conversely, if the … contracts. Finally, it is shown that for a sufficiently large number of agents, a principal who cannot observe the common shock …

. This paper describes and assesses the various forms of incentive contracts …

We examine commonly observed forms of payment, such as milestones, royalties, or consulting contracts as ways of …, royalties are not optimal unless the licensing firm is risk averse. The model also predicts the use of consulting contracts … which improve the firm's ability to monitor inventor effort. Because these contracts increase the firm's expected profits …

Two parties sign a contract but before they fully perform they modify the contract. Should courts enforce the modified … to write a contract that is robust to hold-up or that makes the facts relevant to modification verifiable. But … contract technology, e.g., the use of liquidated damages, to ensure commitment are disfavored by courts and subject to …

-term contracts. We argue that only if the parties to a unitization contract have unit production shares that are the same as their …This paper extends the existing theory and empirical investigation of unitization contracts. It highlights the … cost shares will the contract be incentive compatible. Using a data base of sixty unit operating agreements, we measure the …

contracts are incomplete. They can eliminate the overinvestment effect identified by Rogerson [1984] and Shavell [1980] when …-front payments with what we call 'Cadillac' contracts (contracts for a very high quality or quantity). This combination provides …

The paper reviews empirical findings on executive compensation in light of marginal productivity and contract theories … estimated. Second, executive contracts must provide incentives for managers to act in the interests of shareholders. Potential …

We model imperfect contract enforcement when repudiators and their victims default to spot trading. The interaction … between the contract and spot markets under improved enforcement can exacerbate repudiation and reduce contract execution …, harming all traders. Improved contract execution benefits traders on the excess side of the spot market by attracting …