Subjective evaluations are widely used, but call for different contracts from traditional moral-hazard settings …. Previous literature shows that contracts require payments to third parties, which real-world contracts rarely use. I show that … the implicit assumption of deterministic contracts makes payments to third parties necessary. This paper studies …

Subjective evaluations are widely used, but call for different contracts from classical moral-hazard settings. Previous … literature shows that contracts require payments to third parties. I show that the (implicit) assumption of deterministic … contracts makes payments to third parties necessary. This paper studies incentive contracts with stochastic compensation, like …

-enforceable private contracts (regulation). However, because this mechanism is costly, its effectiveness depends on the aggregate …

investment by a buyer and a seller. Contracts may specify a required quality level and an upper bound to the cost of production … damages ; Cadillac contracts ; incomplete contracts ; cooperative investments …

true for nonenforceable contracts. The relationship of entitlements and obligations to norms is also discussed. …

rationalizes this data as plausible, and evaluates contracts according to their guaranteed expected payoff against the set of … rationalizable technologies. In this environment, robustly optimal contracts augment the contracts in the experimental data with …

Share contracts are common in principal-agent relationships when returns are uncertain and it is costly to measure the …, contingency fees for attorneys, and cropshare contracts used in agriculture. An empirical feature of these contracts is that the … differences among the contracting parties. Using extensive survey data on cropshare contracts in Illinois, I test the hypothesis …