The standard agency model assumes that the agent does not care how his decisions influence others. This is a strong assumption, which we relax. We find that, although monetary incentives are effective also with sociallyattentive agents, the principal may optimally set none. This could explain...

Politicians have multiple principals. We investigate the weights that politicians put on the revealed preferences of their constituents, special interest groups and party when deciding on legislative proposals. Preferences of constituents, special interest groups and parties are directly...