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Appendix: an Optimal Incentives Contract Can Induce the Revelation of True

Question 33

Multiple Choice

Appendix: An optimal incentives contract can induce the revelation of true costs in a partnership by


A) imposing penalties when costs are overstated
B) offering bonus payments when costs are verified
C) renewing the reliance relationship
D) linking revealed cost to the partner's foregone expected profits
E) enlisting third-party enforcement

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