This book examines contractual options for a performance based contract between an owner of a
revenue generating unit and a repair agent for such unit. The framework of the analysis is that
of economists' principal-agent problem. The contractual options of a principal and an agent are
modeled as a Markov process with an undetermined time horizon. For a risk neutral principal
the authors identify the conditions under which a principal contracts with a risk-neutral
risk-averse or risk-seeking agent and derive the principal's optimal offer together with the
agent's optimal service capacity response. In essence the book provides an extensive
formulating analysis of principal-agent contracts given any exogenous parameter values.
Ultimately a small number of formulas cover a large spectrum of principal-agent conditions.
