We analyze optimal contracts and optimal matching patterns in a simple model of partnershipwhere there is a double-sided moral hazard problem and potential partners differ intheir productivity in two tasks. It is possible for one individual to accomplish both tasks (soleproduction) and there are...

This paper studies changes over time in the incidence of labor tying. The existingliterature is successful in explaining the emergence of this institution, but contains thecounterfactual implication that there should be an increasing trend in labor tying. However,previous contributions have so...