We study the optimal duration of contracts in a principal-agent framework with both moral hazard and adverse selection …. Agents decide on a contract-specific and non-verifiable investment. Incentive compatibility requires that initial contracts …

rent due to the persistent belief manipulation effect. We characterize the optimal contract using the dynamic programming … technique in which information rent is the unique state variable. In the optimal contract, the optimal effort is front …-loaded and decreases stochastically over time. Furthermore, the optimal contract exhibits an option-like feature in that …

reexamine this enduring problem from a novel perspective, exposing the relationship between segregation and contract duration …. In the housing context, the main contract duration decision involves the choice between buying (long duration) and … relationship between contract duration and segregation, we apply two methodological approaches: First, we analyze rich survey data …

institutional, structural and technical variables on the duration of contracts. We find that contract duration decreases as the …