John is a landowner who enter a sharecropping contract with Joe, a worker in the fields. In sharecropping, worker and landowner each get some fixed percentage of the output. Suppose the workers share takes the form () = () + , where is some constant and < 1.

Is this contract between John and Joe an example of efficient incentive contract? Explain your answer with the help of a model, arguments and equations. Give three examples of efficient contracts.