are not possible, the insured is faced with a commitment problem since he may want to renegotiate the contract or change …

result, the complete contract may become too complex (or too costly) to devise and manage directly. My contention in this …

principal wants to design a contract that uses this correlated information. We find that the fully specified contract may be too …

in-house by the firm marketing the innovation. We define two organizational structures. In an integrated structure, the … firm that markets the innovation also carries out and finances research leading to the innovation. In an independent … structure, the firm that markets the innovation buys it from an independent research unit which is financed externally. We …

This paper characterizes the optimal insurance contract in an environment where an informed agent can misrepresent the …), the optimal contract is such that higher losses are over-compensated while lower losses are on average under …-compensated. The amount by which higher losses are over-compensated decreases as the loss increases. The optimal contract may then be …

opportunism, remains the principle underlying all of contract law and company law." Ce texte explore l'emploi de l …

reasonably well-developed economic literature. Reciprocal gain, the founding concept of contract and of extensions such as the … of contract law. Yet human nature being what it is, individuals may be tempted by opportunistic acts and their potential …