uninformed investors can compete to provide funding and his contract offer conveys information to the entrepreneur about project …

This paper analyzes the difference between the fixed price contract, common in the Oil & Gas industry, and the uncommon … incentive based contract. Our study shows how the two contracts affect the profits and time usage differently. Both actors … prefer the incentive based contract when the project is completed in less than the estimated time and the service provider …

of re-investment. The optimal contract is implemented using the full array of financial securities plus debt covenants … enhance short-term gains; doing so exposes the principal to large, infrequent losses. The optimal contract includes size as an …

's effort is unobservable to the firm), we show that the optimal contract has an extreme convex form in which a bonus is … unobservable to the salesperson), we show that the optimal contract is smoother as it involves positive compensation for … hurt the agent; in fact, under certain conditions, the contract is concave in sales. We also determine conditions under …

I study a continuous-time principal-agent model in which the principal is ambiguity averse about the agent's effort … cost. The robust contract generates a seemingly excessive pay-performance sensitivity. The worst-case effort cost is high … contract is misspecified, i.e., when he is offered the robust contract, but his true effort cost is constant. I find that …

trades off the instantaneous audit cost versus the drift of the cash flow process. The contract is implemented in standard …

show that a revenue-maximizing government can optimally trade-off direct subsidies for capital investment against the right …

that hardly explains the many features of an insurance contract. We extend this setup to include the situation that the … costlessly observable, then it should be included in the contract to improve the risk sharing-incentive trade-off under moral … resulting incompleteness of the contract opens the door to controversies and disputes that may lead to judicial procedures. We …