inflexible contracts in a bilateral trade context where sellers can adjust trade quality after observing a post-contractual cost … 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 …

This paper has three objectives: first to analyze the interaction between the basic internal contracts that shape the … firm (labour and financial contracts). In particular we show how their temporal dimension are related. The linkage between … firm's internal contracts and the project choice (short-term or long-term) is the second objective of our study. Finally …