We show experimentally that fairness concerns may have a decisive impact on the actual and optimal choice of contracts … in a moral hazard context. Bonus contracts that offer a voluntary and unenforceable bonus for satisfactory performance … provide powerful incentives and are superior to explicit incentive contracts when there are some fair-minded players. But …

We develop a new approach to quantify how patients respond to dynamic incentives in health insurance contracts with a … contracts reset at the beginning of the year, and cost-sharing limits change over the years. Using rich claims-level data from a …

We study a retailer's sourcing contract when the supplier's reservation profit (offered by his outside options) depends … supplier's marginal reservation profit. In this case, the optimal contract quantities maximize the supply chain profits for the … contract. Observations from our analysis contrast with those derived from previous studies, complementing the theory of …