Principals make decisions on various issues, ranging from contract design to control system implementation. Few studies examine the principal's active role in these decisions. We experimentally investigate this role by studying how a principal's choice for a truth-telling incentive contract,...

Principals make decisions on various issues, ranging from contract design to control system implementation. Few studies examine the principal’s active role in these decisions. We experimentally investigate this role by studying how a principal’s choice for a truth-telling incentive contract,...

This study experimentally examines whether task-specific experience acquired by managers influences their reliance on performance-based contracts to motivate employees in a setting in which the employee’s task can spark intrinsic motivation. Building on experiential learning theory, we predict...