sorting, but a direct response to the contract type. Our results demonstrate that a relational contract might be affected by …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 …

trust contracts that pay a generous wage upfront are less efficient than incentive contracts. The principals understand this … provide powerful incentives and are superior to explicit incentive contracts when there are some fair-minded players. But …, which offer important new insights into the interaction of contract choices, fairness and incentives. …