The article discusses how a person's private information affects their behavior in a business deal. The researchers found that a simple solution can be used to create the best contract, using two key factors: the person's future value and the amount of information they keep to themselves. Initially, the contract includes threats of losing money, but over time, as the person's information becomes less valuable, the contract changes. If the person performs poorly at the start, this can have a lasting impact on the deal, even if they improve later on.