Feess, Eberhard; Ossig, Sonja; Walzl, Markus - In: Schmalenbach Business Review (sbr) 57 (2005) 1, pp. 29-45
We derive the optimal contract in a model in which the agent's effort is unobservable and his findings are private information. Our focus is on the impact of the agent's wealth constraint. We show that three regions need to be distinguished: if the agent's wealth is above a critical threshold,...