induced by efficient insurance contracts, i.e., those that are Pareto optimal for the insured and the insurer. One of our … contracts with deductibles are efficient. Characterization results of other risk measures, including the mean and distortion … risk measures, are also presented by linking them to different sets of contracts …

-compensation contracts. Using the introduction of exchanged-traded weather derivatives as a natural experiment, we find that executives who … firms' exposure to an important source of risk influences the design of their incentive-compensation contracts …

I show that stochastic contracts generate powerful incentives when agents suffer from probability distortion. When … implementing these contracts, the principal can target probability distortions in order to inflate the agent's perceived benefits … of exerting high levels of effort. This novel source of motivation is absent in contracts traditionally regarded as …

In a repeated unobserved endowment economy in which agents negotiate long-term contracts with a financial intermediary …

private acquisitions, I find that seller financing and earnouts become more common as information asymmetry increases between … decrease information asymmetry in firm acquisitions. Seller-financed acquisitions also close faster and at higher prices … which privately held firms mitigate adverse selection that arises from information asymmetry.* This paper was previously …

private acquisitions, I find that seller financing and earnouts become more common as information asymmetry increases between … decrease information asymmetry in firm acquisitions. Seller‐financed acquisitions also close faster and at higher prices … which privately held firms mitigate adverse selection that arises from information asymmetry …

In a hand-coded sample of M&A contracts from 2007-08, risk allocation provisions exhibit wide variation. Earn-outs are … allocation provisions. While asymmetric information and incentives are important, so are transaction and agency costs, implying …

these contracts. …

the addition of several new chapters on risk sharing, asymmetric information, adverse selection, signaling and moral … asymmetric information in contractual relationships. It is richly illustrated with 150 figures. It is suitable for both self …