Jun, Byoung; Wolfstetter, Elmar - In: Review of Economic Design 18 (2014) 4, pp. 289-319
<Para ID="Par1">A principal uses security bid auctions to award an incentive contract to one among several agents in the presence of hidden action and hidden information. Securities range from cash to equity and call options. “Steeper” securities are better surplus extractors, yet reduce effort incentives....</para>