Hurwicz, Leonid; Shapiro, Leonard - In: Bell Journal of Economics 9 (1978) 1, pp. 180-191
In a two-agent setting, one agent ("landlord") seeks to maximize his residual gain, i.e., that part of output remaining after payment of a reward to the other agent ("worker"). The reward must be a function of the worker's output since his effort cannot be directly observed, and the landlord...