optimally offers a contract that makes the agent's utility concave in output. If the agent is risk-neutral and protected by …Consider an agent who can costlessly add mean-preserving noise to his output. To deter such risk-taking, the principal … limited liability, this concavity constraint binds and so linear contracts maximize profit. If the agent is risk averse, the …

The judgments of English courts regularly state that the principles governing contract interpretation are well … more conservative approach to contract interpretation under which disputes should be resolved primarily on the basis of … finding that the language of the contract is unambiguous is a ruling that absurd consequences will result …

This paper studies the optimal risk-sharing between an insurer and a reinsurer. The insurer purchases reinsurance for … risk-control and decides her retention level with an objective to minimize her ruin probability. The reinsurer has control … specify the reinsurance contract by solving a system of coupled Hamilton-Jacobi-Bellman equations. We obtain explicit …

The incentive to call for contract renewal to adjust prices is considered from a bilateral perspective in a setting … encompassing several contract forms is formulated, and the existence of an equilibrium to the bilateral renewal game is established …. Prices display inertia, and the incumbent contract is found to be more resistant to changes in outside opportunities, the …

control sessions, incentives are formulated as a classic gain contract, while in treatment sessions, incentives are framed as … an isomorphic loss contract. Our results show that loss contracts reduce the minimum efforts of groups and worsen …