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the optimal contract. A priori more productive (hazard rate dominant) agents work less, enjoy lower rents, but generate a …
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contract and show how it separates the employee types. The optimal contract menu pairs a higher probability of assignment to …
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This paper considers a firm whose potential employees have private information on both their productivity and the extent of their fairness concerns. Fairness is modelled as inequity aversion, where fair-minded workers suffer if their colleagues get more income net of production costs. Screening...
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