endowment shock is small enough, the optimal contract prevents agents from reaching autarky tomorrow and, thus, from being …

given period, after having observed her income, the agent can walk away from the contract, while the intermediary cannot, i … can be provided because in an equilibrium contract an up-front payment effectively locks in the agent with an intermediary …. We then show that our contract economy is equivalent to a consumption-savings economy with one-period Arrow securities …

make external financing costly, the optimal contract between shareholders and employees involves some degree of risk …

This paper examines the sharing of risk under three different remedies for breach of contract. The risk considered …. By means of a numerical example, it is shown that use of the prevailing remedy for breach of contract -- the expectation …