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Nobel for their fundamental contributions to contract theory. This article offers a short summary and discussion of their …
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In this paper, a principal's decision between delegating two tasks or handling one of the two tasks herself is analyzed. We assume that the principal uses both, formal contracts and informal agreements sustained by the value of future relationships (relational contracts) as incentive device. It...
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In this study we examine the effect of incentive contract framing on agent effort in an incomplete contract setting … contracts relative to bonus contracts. However, in an incomplete contract setting, in which the incentive contract does not … incentive contract, such that bonus contracts elicit greater effort on these tasks as compared to penalty contracts. We develop …
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