standard one period contract, where all information arrives at once. Although increasing the number of contingencies will …

first-best benefits are mandated, efficiency requires that both be eased …

's effort is unobservable to the firm), we show that the optimal contract has an extreme convex form in which a bonus is … unobservable to the salesperson), we show that the optimal contract is smoother as it involves positive compensation for … hurt the agent; in fact, under certain conditions, the contract is concave in sales. We also determine conditions under …

procedures. A noisy signal, however, means that the optimal contract will involve terms that courts might view as punitive and so …