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design a contract that consists of a fixed payment and an incentive component. In the second part, students take the role of …
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design a contract that consists of a fixed payment and an incentive component. In the second part, students take the role of …
Persistent link: https://www.econbiz.de/10003315162
We experimentally test the efficacy of indenture as a self-enforced contract device. In an indenture game, the …
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, while the second contract gives an additional sales bonus. Although theory predicts the second contract to be chosen, it is … contracts which determine their managers' salaries. One contract simply gives managers incentives to maximize firm profits …
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