In many markets supply contracts include a series of small, regular payments made by consumers and a single, large … bonus contracts, which builds on a model of attentional focusing. Our main result identifies market conditions under which … bonus contracts should be observed: while a monopolist pays a bonus to consumers - if at all - only for low-value goods …

development. Tournament-based contracts can be very effective in eliciting high effort, often outperforming other compensation … contracts, but they can also have negative consequences for both managers and workers. The benefits and disadvantages of …