Several recent papers argue that contracts provide reference points that affect ex post behavior. We test this … effect of contracts on bargaining threatpoints. We compare situations in which an initial contract is renegotiated to …

Most contracts, whether between voters and politicians or between house owners and contractors, are incomplete. "More …

During the last two decades economists have made much progress in understanding incentives, contracts and organisations …

In a recent paper, Hart and Moore (2008) introduce new behavioral assumptions that can explain long term contracts and … and, in particular, Hart and Moore’s notion that contracts provide reference points. In this paper, we examine … tradeoff between rigidity and flexibility in a trading environment with incomplete contracts and ex ante uncertainty about the …

more than one loss. It gives some evidence that many insurance contracts should be split up. The main result is, that the …

In the presence of a time-inconsistency problem with optimal agency contracts, we show that competitive markets … their contracts and agents can switch firms. As long as the ex-post market outcome satisfies a weak notion of … properties. In addition, we show that equilibrium contracts without commitment are identical to those with full commitment if the …