Abstract
This article provides an overview of recent advances in theoretical and empirical work on incentive contracting in firms. The specific focus is on a variety of reasons why the prediction of the early literature on contracting –suggesting a strong relationship between performance and pay – has not been borne out.
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Prendergast, C. (2018). Contracting in Firms. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2101
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DOI: https://doi.org/10.1057/978-1-349-95189-5_2101
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