-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 extends the existing theory and empirical investigation of unitization contracts. It highlights the … cost shares will the contract be incentive compatible. Using a data base of sixty unit operating agreements, we measure the …

. 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 …

Two parties sign a contract but before they fully perform they modify the contract. Should courts enforce the modified … to write a contract that is robust to hold-up or that makes the facts relevant to modification verifiable. But … contract technology, e.g., the use of liquidated damages, to ensure commitment are disfavored by courts and subject to …

We estimate the impact of venture capital (VC) contract terms on startup outcomes and the split of value between the … power to receive more investor-friendly terms compared to the contract that maximizes startup values. Better VCs still … certain contract terms benefits entrepreneurs and enables low-quality entrepreneurs to finance their startups more quickly …

procurement contracts in which the procurer is either a public administration or a private corporation. We find robust evidence … consistent with the model predictions: public-to-private contracts are renegotiated more often than comparable private …-to-private contracts, and that this pattern is more salient in politically contestable jurisdictions. The frequent renegotiation of public …

We examine commonly observed forms of payment, such as milestones, royalties, or consulting contracts as ways of …, royalties are not optimal unless the licensing firm is risk averse. The model also predicts the use of consulting contracts … which improve the firm's ability to monitor inventor effort. Because these contracts increase the firm's expected profits …

Economic models of contract typically assume that courts enforce obligations based on verifiable events (corresponding … optimal contract design given the available remedies used by the courts. This paper shows that American standard form … construction contracts can be viewed as an efficient mechanism for implementing building projects given existing legal rules. It is …

We model imperfect contract enforcement when repudiators and their victims default to spot trading. The interaction … between the contract and spot markets under improved enforcement can exacerbate repudiation and reduce contract execution …, harming all traders. Improved contract execution benefits traders on the excess side of the spot market by attracting …