have a decisive impact on the actual and optimal choices in the reciprocity-based contracts. The principal pays higher … salaries in the bonus contract as compared to an incentive contract. Originality/value The study contributes to the behavioral … economic literature in the following dimensions. The existing literature on lab experiments considers a bonus contract as …

used as commitment devices when it is impossible to commit not to renegotiate them. We characterize renegotiation …

-seller relationship with renegotiation. Our paper provides causal experimental evidence that an initial contract has a highly significant … threatpoints. We compare situations in which an initial contract is renegotiated to strategically equivalent bargaining situations … in which no ex ante contract was written. The ex ante contract causes sellers to ask for markups that are 45 percent …

We consider the problem of a principal who wishes to contract with a privately informed agent and is not able to commit … renegotiate the resulting contract without cost by proposing a new mechanism any number of times. We provide a general …-to-use tool to analyze contracting problems with limited commitment. We apply the solution concept to a setting with a continuous …

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 …

Gaming is an important problem when firms use a nonlinear incentive contract. Previous empirical researches show that … is higher when the employee is more productive. Moreover, we compare a liner contract and a quota-based contract and show … that even when an employee can game the incentive system,a quota-based contract is more profitable than a linear contract …