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derive the optimal contract for both experimentation and production when the agent has private information about his … asymmetric information is endogenously determined by the length of the experimentation stage. An optimal contract uses the length …
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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 … better than the debt contract; however, it does not consider the trust contract better than the debt contract. …
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