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• W803144238 abstract "Abstract The canonical moral hazard model is extended to allow the agent to face endogenous and noncontractible uncertainty. The agent works for the principal and simultaneously pursues outside rewards. The contract offered by the principal thus manipulates the agent's work–life balance. The participation constraint is slack whenever it is optimal to distort the agent's work–life balance away from life compared to a symmetric‐information benchmark. Then, the agent's expected utility is high and he faces flatter incentives. Such contracts may be optimal when the two activities are strong substitutes in the agent's cost function or when reservation utility is low." @default.
• W803144238 created "2016-06-24" @default.
• W803144238 creator A5070749238 @default.
• W803144238 date "2020-06-01" @default.
• W803144238 modified "2023-09-27" @default.
• W803144238 title "Contracting with private rewards" @default.
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• W803144238 doi "https://doi.org/10.1111/1756-2171.12326" @default.
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