utility is represented by a convex combination of selfish preferences and Kantian morality, or by altruism. In a moral hazard … in a team setting with two agents whose efforts affect output stochastically, I demonstrate that the power of extrinsic … incentives decreases with the degrees of morality and altruism displayed by the agents, thus leading to increased profits for the …

decentralized team contracts, as well. We prove that the principal may restrict attention to team contracts whenever returns from …