On the design of piece-rate contracts

C-Tier
Journal: Economics Letters
Year: 2010
Volume: 107
Issue: 3
Pages: 330-332

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We characterize the optimal piece-rate contract in the canonical moral hazard setting with a wealth-constrained, risk averse agent. The contract is shown to have a simple, intuitive characterization in a structured, but broad, class of settings.

Technical Details

RePEc Handle
repec:eee:ecolet:v:107:y:2010:i:3:p:330-332
Journal Field
General
Author Count
3
Added to Database
2026-01-24