in quantity and quality of output. We use data from a controlled field experiment that changed the communication of the …

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 …

of unverifiable information and the quality of communication depends on the conflict of interests between the government …