nature characterized by large gains from trade. A consumer's degree of optimism is his private information, and the …

nature characterized by large gains from trade. A consumer's degree of optimism is his private information, and the …

. flexibility. The first-best contracts under complete information allow to successfully commit to the optimal level of flexibility … optimal screening mechanism and characterize its distortions. We analyze the inefficiency of the monopolist's offers in terms …

from inherent biases such as over-optimism. Menus of contingent contracts that arise in principal-agent relationships are …We propose to view action-contingent contracts as bets, motivated by different prior beliefs between the contracting … offer his worker to choose between fixed-wage and profit-sharing schemes, in order to screen the worker's degree of optimism …

contingent contracts, the litigants can mitigate risk and/or speculate on the trial outcome. The opportunity for contingent … contracting decreases the settlement rate and increases the volume and costs of litigation. These contingent contracts mimic the …

screening by mode of trade. By selling to high types while renting to low types, the monopolist overcomes the obstacles …

screening by mode of trade. By selling to high types while renting to low types, the monopolist overcomes the obstacles …

other agents’ trades. Furthermore, we describe bilateral contracts (non-linear pricing schemes) and characterize their … consequences of the explicit dependence of the contracts on network structure. When the network is balanced in terms of homogeneity … of agents’ influence, network structure has no impact on the firm’s profit for bilateral contracts. On the other hand …