We study the tension between competitive screening and contract enforcement where a principal trades repeatedly with … renewable contract with one agent. To enhance enforcement, explicit contract duration is also reduced. However, these policies …

-contractible maintenance investment. Since, however, incentive provision is costly, long-term contracts will be employed only when, due to the …

attempts to appropriate the whole gains from trade, which causes much disagreement about contract terms. If contracts are … long side of the market so that there is little disagreement about contract terms. Our results support theories of the …

that firms' relationships in product markets and technology space jointly determine the type of licensing contract chosen …

partnership in which they have invested, bear the costs yet forego the benefits of the investment, join another partnership …, invest there anew, and appropriate the surplus created by the new investment. To capture the idea we introduce the notion of … reinvestment-proof equilibria in which no agent has an incentive to reinvest or to change his investment in the current firm. We …

An inventor can invest research effort to come up with an innovation. Once an innovation is made, a contract is …'s investment incentives are increasing in his bargaining power. Yet, given limited liability, overinvestments may occur and the … inventor's investment incentives may be decreasing in his bargaining power. …

dimensions of non- contractible investment. In equilibrium, the first best is attained if and only if ownership of tangible and … declines: the final producer must either integrate her suppliers, which prompts a decline in their investment; or else risk …

ruled out, we find that option contracts significantly improve investment incentives compared to a no-contract treatment …In the contract-theoretic literature, there is a vital debate about whether contracts can mitigate the hold-up problem …

valuation. The ex ante optimal contract may encourage information gathering, even though it is commonly known that it is ex post …