We study the optimal duration of contracts in a principal-agent framework with both moral hazard and adverse selection …. Agents decide on a contract-specific and non-verifiable investment. Incentive compatibility requires that initial contracts …, which serve to screen the ability of newly hired agents, cannot be longer than continuation contracts, offered to successful …

legislation, and negative attention surrounding NPCs, which led many chains to remove such clauses from their contracts, caused …

Recent theoretical research has identified many ways how contracts can be used as rent-seeking devices vis-à-vis third … and players sign binding contracts which are, however, frequently renegotiated when other teams (entrants) want to hire … the player. Because they weaken entrants in renegotiations, long-term contracts are useful rent-seeking devices for the …