breach is efficient when performance of a contract generates a negative total surplus for the parties. However, by … be different from loss-avoiding breaches. To capture these different motives, we designed a novel game called Contract … performance remedy. Results from an incentivized laboratory experiment indicate that the motives behind the breach induce sizable …

breach is efficient when performance of a contract generates a negative total surplus for the parties. However, by … be different from loss-avoiding breaches. To capture these different motives, we designed a novel game called Contract … performance remedy. Results from an incentivized laboratory experiment indicate that the motives behind the breach induce sizable …

derive the optimal contract for both experimentation and production when the agent has private information about his … efficiency in experimentation. This private information in the experimentation stage generates asymmetric information in the … asymmetric information is endogenously determined by the length of the experimentation stage. An optimal contract uses the length …

the achievement of economic efficiency serves as contract law’s major goal. This article, however, examines an alternative … tension between efficient contracting and inefficient contract law casts some doubt on a major rationale for making efficiency … literature’s many inconsistencies in conclusions about the efficiency of contract rules. Finally, it helps explains the major …

, which offer important new insights into the interaction of contract choices, fairness and incentives. …

-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 …

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 …