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 …

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. …

actually pay the announced bonus. This offers a new explanation for why explicit and implicit incentives are substitutes rather …