In the last thirty years, much theoretical work has been expanded to draw the implications from the fact that agents use their private information strategically. However, only recently have the consequences been subjected to empirical testing. This paper aims at introducing the reader to this...

While the theoretical literature on contracts has been enormous since the seventies, empirical tests of the theory have long remained scarce. However, new empirical work has been developed in the last ten years that sheds light on the empirical validation of the theory. This paper aims at...