parties can sign noncontingent contracts prior to investing, and can freely renegotiate them after uncertainty about the … desirability of trade is resolved. We find that such contracts can induce one party to invest efficiently when either a breach …

form for short hauls -- hauls for which quasi-rents are particularly small. Contracts' role as protectors of quasi …

This paper extends the existing theory and empirical investigation of unitization contracts. It highlights the …-term contracts. We argue that only if the parties to a unitization contract have unit production shares that are the same as their …

. This paper describes and assesses the various forms of incentive contracts …

Tournaments, reward structures based on rank order, are compared with individual contracts in a model with one risk … absence of a common shock, using optimal independent contracts dominates using the optimal tournament. Conversely, if the … contracts. Finally, it is shown that for a sufficiently large number of agents, a principal who cannot observe the common shock …

efficiency is not attainable. We show that contracts involving mutual control might sometimes be superior to the best contract … likely to be improved by a contractual arrangement that could be agreed upon in advance. In such contracts various aspects of … studies contracts of this nature. We examine the feasibility of implementing various agreements and the nature of optimal …

efficiency as a byproduct of their attempt to mitigate risk. However, employment is above rather than below the efficient level …

Weak contract enforcement may reduce the efficiency of investment in developing countries. I study how contract … enforcement affects efficiency in procurement auctions for the largest power projects in India. I gather data on bidding and ex … post contract renegotiation and find that the renegotiation of contracts in response to cost shocks is widespread, despite …