Add to ORKGPrior agency models examining the design of incentive contracts generally suffer two major deficiencies. First, they implicitly assume that performance measures are available for contracting between the principal and agent. In many situations, however, certain important variables are unobservable (or unverifiable) and, therefore, uncontractible. The assignment of property rights of uncontractible output can provide one efficient solution to this problem. Second, under a multitask environment, it is common that doing one task may not only affect its “major ” output, but also positively or negatively influences the outputs of other tasks. However, these positive and negative crossover effects have been overlooked in prior agency studies. The ...