This online appendix contains the derivation of the closed form solutions for the examples used in the main working paper No. 16-002. It establishes the result stated in Section 4.3 of the main paper, that Proposition 4 continues to hold even if the price is endogenous and there are production...

Revenue sharing between principals and agents is commonly used to balance double-sided moral hazard. We provide a theory of how, when such revenue-sharing is optimal, a principal allocates control rights over decisions that either party could make. We show that the principal either keeps control...