The authors appreciate comments from Björn Bartling, Ernst Fehr, Maria Guadalupe, Michael Kosfeld, Ola Kvaloy, Tom Palfrey, Jean-Robert Tyran, Giorgio Zanarone, and seminar participants at Workshop on Behavioral Public Economics, Vienna, Workshop on Organizational Economics, University of Konstanz, Brownbag Seminar, University of Lausanne, Workshop on Incentives and Motivation, Stavanger, Society of Institutional and Organizational Economics, Stockholm, Organizational Economics Workshop, Berkeley, National Bureau of Economic Research Organizational Economics Workshop, and Relational Contracts Workshop, Moscow.