have a decisive impact on the actual and optimal choices in the reciprocity-based contracts. The principal pays higher … salaries in the bonus contract as compared to an incentive contract. Originality/value The study contributes to the behavioral … economic literature in the following dimensions. The existing literature on lab experiments considers a bonus contract as …

We implement a laboratory experiment in which a principal has to decide on monitoring intensity and pay to investigate … be complements. The between-treatment variation in our experiment is qualitatively in line with the normative prediction … pay for the principal to only rely on the reciprocity of his agents. …

We investigate how payoff-irrelevant terms can negatively impact relational contracts. In a lab experiment we compare … two economically equivalent contracts - a fixed-term renewable and an open-ended at-will contract. Each contract provides … partners with full flexibility regarding the length and termination of their interaction. When only one contract type is …

, which offer important new insights into the interaction of contract choices, fairness and incentives. …