In a multi-agent contracting setting, agents' performances are related due to both correlating noise and effort spillover. We study the optimal linear contract in which the agents are risk averse. Putting compensation weights on peers' performances helps to filter out common noise, which relaxes...

Two types of intervention are commonly implemented in networks: characteristic intervention which influences individuals' intrinsic incentives, and structural intervention which targets at the social links among individuals. In this paper we provide a general framework to evaluate the distinct...