We analyze the design of an optimal contract in a two-person partnership in which all the firm's proceeds are re-distributed back to the workers according to a noisy binary signal of relative performance. A worker devotes two types of costly effort: own effort into his assigned task and helping...

We study the choice of a principal to either delegate a decision to a group of careerist experts, or to consult them individually and keep the decision-making power. Our model predicts a trade-off between information acquisition and information aggregation. On the one hand, the expected benefit...