player has higher material payoffs, so that reciprocity does not increase equity: For sufficiently strong reciprocity …

insight to analyse the trade credit volume and the contract terms. Our analysis suggests that the most important product … characteristic for explaining trade credit volume and contract terms is the ease with which the seller’s product can be diverted …

lenders, which may make lending altogether unprofitable. Second, banks can have an incentive to offer a debt contract and … additional equity contracts to intermediate debtors, which is in turn dominated by a simple debt contract, only attractive for … seek to avoid the contract with the highest chance of delivery: that contract attracts all bad entrepreneurs. …

conditions, there exists a first-best contract which takes the form of a bonus contract. In the latter, we show that there exists … no first-best contract and we use a numerical approximation to study the properties of the second-best contract … conditions, there exists a first-best contract which takes the form of a bonus contract. In the latter, we show that there exists …

finds that higher wages are associated with lower monitoring, irrespective of whether these high wages are caused by labour …. Labour market regulations that reduce monitoring by pushing wages up may increase net output or reduce it only by a small …