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We introduce a dynamic principal-agent model to understand the nature of contracts between an employer and an independent gig worker. We model the worker’s self-respect with an endogenous participation constraint; he accepts a job offer if and only if its utility is at least as large as his...
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I extend Myerson's (1981) ironing technique to more general objective functions. The approach can be used to solve quasilinear principal-agent models with a one-dimensional type in the general case where the monotonicity constraint implied by incentive compatibility may be binding at the...
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