This paper shows that supervision with soft information is valuable whenever supervisors and supervisees collude under asymmetric information and proceeds then to derive an Equivalence Principle between organizational forms of supervisory and productive activities. We consider an organization...

As was shown by M. Dewatripont (1986), optimal long-term contracts under asymmetric information are generally not time-consistent. This paper fully characterizes the equilibrium of a two-period procurement model with commitment and renegotiation. It also analyzes whether renegotiated long-term...

This paper shows that supervision with soft information is valuable whenever supervisors and supervisees collude under "asymmetric" information and proceeds then to derive an "Equivalence Principle" between organizational forms of supervisory and productive activities. We consider an...

This paper develops a theory of sharecropping which emphasizes the dual role of moral hazard in the provision of effort and financial constraints. The model is compatible with a large variety of contracts as observed in the region of El Oulja in Tunisia. Using an original data set including...