While it is clear that in most settings, landlords generally contract with many tenants whose productivities are positively correlated, the salience of relative performance evaluation in the design of rural wage contracts has been little studied in development economics. This paper analyzes two...

To be given the authority to exercise discretion on behalf of another is the hallmark of trust for a human agent. This paper describes a normative theory and model of trust derived from principles of the U.S. law of agency. We posit that norms of agency help reduce the risk in deploying agents...

It has been argued that collusion among the members of an organization may lead to inefficiencies and hence should be prevented in equilibrium. This paper shows that whenever the parties to an organization can renegotiate their incentive scheme after collusion, these inefficiencies can be...