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seller's valuation and the buyer's valuation, and the buyer evaluates each contract according to its worst-case performance … over a set of probability distributions. This paper demonstrates that the contract that maximizes the minimum payoff over … contract for any given probability distribution is a posted price, which induces bunching. Using the e-contamination model …
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Introduction -- Incentive Problems -- Basic Structures of Contracting Problems -- Discrete-Time Formulation I -- Discrete-Time Formulation II -- Contracting in Continuous Time: Time-Multiplicative Preferences -- Optimal Performance Metrics -- Contracting under Incomplete Information -- Career...
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