¡°government-bank-firm¡±, we show that the government¡¯s non-commitment and banking bailout cause inefficiency in the contact … relationship. Moreover, after introducing collusion possibility, non-commitment of the government increases the stakes, or bribes … other equilibrium where she sticks to her commitment and excludes collusion from the contract relationship. Here, collusion …

contracting. I argue that intermediated contracting permits one form of auditing, in which the sub-contract offered to the firm is … examined, contingent on the intermediary’s report. Auditing reduces the intermediary’s rent and increases allocative efficiency. …

writing a contract without a termination clause is a credible commitment even when partners can add such a clause in the …