The study looks at how contracts between bosses and workers can change when workers have other options. They find that when workers can trade risk with others, bosses need to offer steeper contracts to get good work. Sometimes, workers accept these contracts but then undo some of the incentives through other trades. In some cases, workers end up not working as hard as they should, bosses lose out, and overall welfare goes down. This means that when designing pay plans, bosses should consider what other options workers have, even if they're not related to the job. This could change some ideas about how pay should be set.