Relational incentive contracts with productivity shocks

This paper extends Levin’s (2003) relational contract model by having not only the agent’s cost of effort (agent’s type), but also the value of that effort to the principal (principal’s type) subject to i.i.d. shocks. When optimal effort is ful...

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Bibliographic Details
Main Author: Malcomson, J
Format: Working paper
Published: University of Oxford 2012