In this paper we aim to contribute to the discussion on the role of royalties in copyright agreements by concentrating on the incentives that they provide to the creator and the intermediary when the success of the work depends on their involvement with the commercialization process. We also...

We develop an axiomatic foundation for the classical problem of paying workers in settings where their actions are not observed by the employer. The latter only observes the distribution of ability and demands fairness. First, we uniquely characterize workers’ expected pay thanks to a set of...

The paper studies the role of information transparency on fairness concerns, welfare and efficiency. When the firm's productivity and ultimately profits are revealed, wage offers induce relatively fair divisions of potential gains and workers respond with higher performance. Workers respond not...