Employment contracts give a principal the authority to decide flexibly which task his agent should execute. However, there is a tradeoff, first pointed out by Simon (1951), between flexibility and employer moral hazard. An employment contract allows the principal to adjust the task quickly to...

Employment contracts give a principal the authority to decide flexibly which task his agent should execute. However, there is a tradeoff, first pointed out by Simon (1951), between flexibility and employer moral hazard. An employment contract allows the principal to adjust the task quickly to...

Social sciences and the employment relationship -- Origins of the field of industrial relations -- Marxism, economics, and industrial relations -- Social systems, conflict, and change -- Neo-institutionalists, economics, and industrial relations -- Psychologists and industrial relations --...