Incentivizing Quality in Software Development
A software company's contract with its developers specifies bonuses based on delivering a certain number of features by a set deadline. A project manager observes that while all developers meet their deadlines, some write clean, maintainable code that is easy for others to build upon, while others write messy, convoluted code that creates future technical problems. The manager wants to reward the former and discourage the latter, but finds it difficult to write a formal, enforceable contract clause based on 'code quality.'
Evaluate this situation. First, explain why 'code quality' as described here is an example of information that is difficult to enforce in a contract. Second, propose and justify two alternative strategies (one that modifies the contract and one that does not) the company could use to encourage developers to write higher-quality code, despite this difficulty.
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