The current study investigates a tripartite incentive contract between an innovator supplying an intellectual asset, a professional assigned to productive tasks, and a consulting firm specializing in matching ideas and professional skills. A rather simple pure tripartite partnership implements...

Fair employment policies constrain employee selection: specifically, applicants’ professional experience can substitute for formal education. However, reflecting firm-specific job requirements, this substitution rule applies less strictly to applicants from outside the firm. Further, setting...

Assuming a liquidity constrained agent, we characterize the optimal implicit contract in a repeated game characterized by moral hazard. With longer expected contract duration, bonus pay is shown to decrease while salary promise and productivity increase. We test our model using personnel data of...