rents, reducing his incentives to exert effort. The optimal contract controls information rents to improve incentives by … reflects the agent's private ability, a simple equity contract is optimal …

about the asset? How do the disclosure rules of contract law influence the investigation decision? Shavell (1994) showed … rule, which requires disclosure of material information, but only after the contract is concluded. We show that this rule … can be more efficient than both voluntary disclosure and mandatory (pre-contract) disclosure …

commitment. By allowing the principal to use general communication devices we overcome the literature's common, but overly … restrictive focus on one-shot, direct communication. In addition, general communication devices solve two fundamental problems of … the message spaces of the communication device. An example illustrates our arguments and the suboptimality of one …

trades off the instantaneous audit cost versus the drift of the cash flow process. The contract is implemented in standard …

contract is collateralized when in some state, some portion of the borrower's net worth is forfeited to the lender. We show …

seller's valuation and the buyer's valuation, and the buyer evaluates each contract according to its worst-case performance … over a set of probability distributions. This paper demonstrates that the contract that maximizes the minimum payoff over … contract for any given probability distribution is a posted price, which induces bunching. Using the e-contamination model …

, we exploit an exogenous change in the contract structure in 2003, the piece rate increasing from 20.2 to 22.9 euros. We …