Partnerships are the prevalent organizational form in many industries. Most partnerships share profits equally among …

Partnerships are the prevalent organizational form in many industries. Most partnerships share profits equally among …

Partnerships are the prevalent organizational form in many industries. Profits are most frequently shared equally among … averse partners the equal sharing rule is the unique sharing rule that maximizes the agents' incentives to exert effort. We … further show that inequity aversion can enhance efficiency in partnerships of given size, but that it can also cause …

preferences. We characterize the incentives induced by the principal's preferences, contrast them with ex ante optimal contracts …

provide powerful incentives and are superior to explicit incentive contracts when there are some fair-minded players. But …, which offer important new insights into the interaction of contract choices, fairness and incentives. …

actors provide powerful incentives and become superior when there are some fair-minded players. The principals understand … enforcement power of explicit and implicit incentives. This contract preference is associated with the fact that explicit … incentives weaken the enforcement power of implicit bonus incentives significantly. Our results are largely consistent with …

We show that concerns for fairness may have dramatic consequences for the optimal provision of incentives in a moral … incentives and become superior when there are also fair-minded players. These predictions are strongly supported by the results …