Managers often use tournament incentive schemes which motivate workers to compete for the top, compete to avoid the … bottom, or both. In this paper we test the effectiveness and efficiency of these incentive schemes. To do so, we utilize … levels for three tournament incentive schemes: reward tournaments, punishment tournaments, and tournaments combining reward …

derive the optimal contract for both experimentation and production when the agent has private information about his … asymmetric information is endogenously determined by the length of the experimentation stage. An optimal contract uses the length …

We investigate how payoff-irrelevant terms can negatively impact relational contracts. In a lab experiment we compare … two economically equivalent contracts - a fixed-term renewable and an open-ended at-will contract. Each contract provides … partners with full flexibility regarding the length and termination of their interaction. When only one contract type is …