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, which offer important new insights into the interaction of contract choices, fairness and incentives. …
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We develop a new approach to quantify how patients respond to dynamic incentives in health insurance contracts with a deductible. Our approach exploits two sources of variation in a differences-in-regression-discontinuities design: deductible contracts reset at the beginning of the year, and...
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Many executives have compensation that is potentially forfeit conditioned on the circumstances surrounding their departure from the firm. We study firms' endogenous decisions to use such compensation "holdbacks" as a bonding device and find that firms with higher executive replacement costs,...
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This paper examines the optimal provision of incentives for contract designers. A principal hires an agent to draft a … contract that is incomplete because the ex-ante specified design might not be appropriate ex-post. The degree of contract … characterize the optimal incentive scheme for the agent and discuss implications for the degree of contract incompleteness and the …
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