The article explores how contracts between bosses and workers can change when the worker's actions give them important but hard-to-check information. By looking at a broader scenario than before, the study shows how distorting decisions can lower risk for a cautious worker. It also reveals that making the best decision doesn't always limit the contract. The researchers use bidding for goods or services to illustrate these ideas and find that a worker with limited risk-taking might choose safer or riskier bids based on their limits. They also find that contracts can be straightforward or have some flat parts, like stock options.