wholesale price contract, and each retailer must choose his own retail price if he accepts the supplier's wholesale price offer …

rationality, that aims to explain rejections. When fairness considerations are private information, we derive an optimal contract … and characterize conditions in which this optimal contract implies rejections. Thus, our major finding is that when …

interaction between the subjects. We show the simple wholesale price contract to perform as good as the more sophisticated buyback … and revenue sharing contracts. In addition, the buyback contract performed better than the mathematically …-equivalent revenue sharing contract by certain measures. We separately explain the effects of the manufacturer’s and the retailer …

-retailer supply chain. In each period, the manufacturer offers a wholesale price contract, and the retailer, who faces the newsvendor … contract, in which case both firms receive zero profits. The firms are represented by human subjects who interact repeatedly … throughout the experiment, capturing a long-run relationship. Our first study focuses on the power of commitment to a decision …

, which offer important new insights into the interaction of contract choices, fairness and incentives. …

-seller relationship with renegotiation. Our paper provides causal experimental evidence that an initial contract has a highly significant … threatpoints. We compare situations in which an initial contract is renegotiated to strategically equivalent bargaining situations … in which no ex ante contract was written. The ex ante contract causes sellers to ask for markups that are 45 percent …

If principals are allowed to choose between a revenue sharing, a bonus and a trust contract, a large majority of … experimental subjects choose the revenue sharing contract. We find that this choice is the most efficient while at the same time …

How does an ex ante contract affect behavior in an ex post renegotiation game? We address this question in a canonical … buyer-seller relationship with renegotiation. Our paper provides causal experimental evidence that an initial contract has a … bargaining threat points. We compare situations in which an initial contract is renegotiated to strategically equivalent …

This article examines the implications of Rawls' theory, justice as fairness, for contract law. It argues that contract … contract law as well as Rawlsian theory. On the one hand, justice as fairness has clear normative implications for the … law as an institution is part of the basic structure of society and as such subject to the principles of justice …