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 …

this argument when workers have career concerns. Disclosure has two effects: it exposes the worker to uncertainty about …-maximizing disclosure policy reveals output realizations in the center of the distribution, but not in the tails. Thus, it is efficient for …

Kevane (2002). We study the trade-off between the optimal rigid lending contract and the optimal discretionary one and find … that a rigid contract is optimal when the audit cost is larger than gains from insurance. Our analysis explains rigid … insurance can be provided by borrowers themselves under individual liability through a side-contract. …

In a model where biased judges can distort contract enforcement, we uncover positive feedback effects between the use … law matures. Contract standardization avoids this cost, statically improving enforcement; but it crowds out innovative …

I provide a justification of intellectual property rights as a source of static efficiency gains in manufacturing …