Firms exist to coordinate capital with workers activities to produce a good or service. Successful firms must be organized to give agents the correct incentives, and to reward them in order to attract and prevent them from leaving. The objective of this thesis is to understand how consumers establish and design firms to achieve these goals. The first chapter designs the optimal contract between a wealth constrained agent and a principal that owns a task. The second chapter design the optimal contract between a wealth constrained entrepreneur and an investor when effort from both agents is required for the firm to be successful. The third chapter studies how the agency relationship of a firm with it's clients is affected when the firm is organized as a partnership.
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