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  1. Multi-task agency with unawareness.Ernst-Ludwig von Thadden & Xiaojian Zhao - 2014 - Theory and Decision 77 (2):197-222.
    The paper introduces the problem of unawareness into multi-dimensional Principal–Agent theory. We introduce two key parameters to describe the problem, the extent and the effect of unawareness, show under what conditions it is optimal for the Principal to propose an incomplete or a complete contract, and characterize the incentive power of optimal linear contracts. If Agents differ in their unawareness, optimal incentive schemes can be distorted for both aware and unaware Agents, because, different from standard contract theory, the single-crossing property (...)
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  • Repeated interactions and endogenous contractual incompleteness: Experimental evidence.Jean Beuve & Claudine Desrieux - 2016 - Theory and Decision 80 (1):125-158.
    This paper empirically investigates the interaction between repeated transactions and endogenous contractual incompleteness. We design an indefinitely repeated games experiment between identifiable players. In this experiment, the probability of continuation and the level of shared information vary over the treatments. The level of contractual completeness is decided by participants at each period. Our results show that past interactions are a stronger determinant of the level of investment in contractual completeness than the perspective of future business.
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