Brandts, Jordi; Charness, Gary; Ellman, Matthew - Barcelona Graduate School of Economics (Barcelona GSE) - 2012
shock and a discretionary buyer transfer. In the absence of communication, we find that rigid contracts are more frequent … and lead to higher earnings for both buyer and seller. By contrast, in the presence of communication, flexible contracts … considerably more from flexible with communication than rigid without communication. Our results show quite strongly that …