Ethics is a branch of philosophy that can trace its roots back at least 2500 years. Since the time of Socrates, Plato, and Aristotle a succession of theories has been advanced to provide a set of principles of human conduct. As examples, egoism argues that an act is appropriate if and only if it...

We study relationships between parties who have different preferences about how to tailor decisions to changing circumstances. Our model suggests that relational contracts supported by formal contracts may achieve efficient relational adaptation. Our empirics consider revenue-sharing contracts...