post level of effort not by outcome-contingent rewards, but by the choice of the project's mission. The closer the project …'s mission to the agent's preferred mission, the higher the agent's intrinsic benefit from exerting effort. The principal and the … agents disagree on what the project's mission should be and the agents vary in how much they care about the project's mission …

effort by the choice of the project mission. The principal's and the agents' mission preferences are misaligned, and the …) brings the mission closer to the agent’s (principal’s) preferences. Furthermore, when effort is non-contractible, the optimal … mechanism i) has a "double distortion" in the mission; ii) does not exclude low-types agents; and iii) can be implemented …

imperfections. We show that inefficient assignments arise even with full information about employees' types and complete contracts …