I examine an agency model where the principal has either a legitimate or an illegitimate motive for revising the incentive contract, whereas the agent does not observe the principal's motive and creates more organizational frictions as he becomes more suspicious that the principal is...

Market interactions are brought about by the interplay of entitlements and obligations. Entitlements are rights, as perceived by the individuals. They are subjectively perceived rights that go along with a motivational disposition to defend them. Obligations are the counterparts of entitlements....