Labor relations involve incentive problems. The market solves these problems by developing a variety of institutions …. This paper describes and assesses the various forms of incentive contracts …

closed form). By modeling the noise before the action in each period, we force the contract to provide sufficient incentives …This paper identifies a class of multiperiod agency problems in which the optimal contract is tractable (attainable in … utility, a pecuniary cost of effort, Gaussian noise or continuous time. The contract's functional form is independent of the …

drift in continuous time. The difficulty in writing an appropriate financial contract in this setting is that the agent can … the mean of cash flows by not putting in effort. To give the agent incentives to provide effort and repay the principal, a … long-term contract specifies the agent's wage and can force termination of the project. Using techniques from stochastic …

the optimal contract and analyze how it changes with informativeness. We consider a standard agency model with risk …-neutrality and limited liability, where the optimal contract is a call option. The direct effect of reducing signal volatility is a … fall in the value of the option, benefiting the principal. The indirect effect is a change in the agent's effort incentives …

We derive a measure that captures the extent to which overlapping ownership structures shift managers' incentives to … possibility that the growth of common ownership has had a significant impact on managerial incentives …

compensation plans on personal productivity. We study an international law firm that moves from high-powered individual incentives … towards incentives for "leadership" activities that contribute to the firm's long run profitability. The effect of this change …

reduces a colleague's marginal cost of effort, and synergy to be the sum of the (unidimensional) influence parameters across a … depends only on total synergy and not individual influence parameters. An increase in synergy raises total effort and total … pay, consistent with strong equity incentives in small firms, including among low-level employees. The influence …

cost shares will the contract be incentive compatible. Using a data base of sixty unit operating agreements, we measure the … importance of incentive-compatibility and self-enforcement and the bargaining problems faced in achieving viable, long …-term contracts. We argue that only if the parties to a unitization contract have unit production shares that are the same as their …

's incentive contract provides a typical physician an increase, at the margin, of $0.10 in income for each $1.00 reduction in …We study the effect of physician incentives in an HMO network. Physician incentives are controversial because they may … induce doctors to make treatment decisions that differ from those they would chose in the absence of incentives. We set out a …