This paper studies how altruism between managers and employees affects relational incentive contracts. To this end we …

contracts which determine their managers' salaries. One contract simply gives managers incentives to maximize firm profits …, while the second contract gives an additional sales bonus. Although theory predicts the second contract to be chosen, it is … only rarely chosen in the experimental markets. This behavior is rational given that managers do not play according to the …

learn the abilities of agents. Theory suggests high first-period equilibrium effort in the hidden ability treatment but no …

Companies employ managers for either practical, legal or administrative reasons. However, no matter what the reason …, the good performance of managers and the success of companies are vital elements for firms. At this point, managerial …

having managers cheat to win. We explore tournament theory to detail its vulnerabilities to various forms of cheating …, we discuss possible ways to address these vulnerabilities to the schemes we rely on to motivate managers to put in the …