This paper analyses bargaining over an incentive compatible contract in a moral hazard framework. We introduce the Kalai–Smorodinsky bargaining solution and compare the outcome with the commonly applied Nash solution. Whether worker׳s effort is higher in the Nash or the Kalai–Smorodinsky...

This paper analyses bargaining over an incentive compatible contract in a moral hazard framework. We introduce the Kalai-Smorodinsky bargaining solution and compare the outcome with the commonly applied Nash solution. Whether worker's effort is higher in the Nash or the Kalai-Smorodinsky...

This paper analyses bargaining over an incentive compatible contract in a moral hazard framework. We introduce the Kalai-Smorodinsky bargaining solution and compare the outcome with the commonly applied Nash solution. Whether worker's effort is higher in the Nash or the Kalai-Smorodinsky...