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This article provides a non-technical survey on recent topics in the theory of contracts. The hold-up problem is presented and the incomplete contracts approach is discussed. Emphasis is put on conceptual problems and open questions that await further research.
Persistent link: https://www.econbiz.de/10005621420
interpreted as a 'simple' contract that the parties have written ex ante. This result is used in order to show that simple …
Persistent link: https://www.econbiz.de/10005836090
investment in land improvement and conservation measures. It then analyzes this relationship with a multivariate probit model … Ghana. A major hypothesis tested is that investment in productivity enhancing and conservation techniques are influenced by …
Persistent link: https://www.econbiz.de/10009652030
A new approach is presented. It is based on a generalization of a breach of a term of contract and on the economic …
Persistent link: https://www.econbiz.de/10005836335
contract trades off the resulting inefficiencies that arise from such "self made" job security with the reduced incentives and …
Persistent link: https://www.econbiz.de/10011109712
We empirically assess the winner’s curse effect in auctions for toll road concessions. First, we investigate the overall winner’s curse effects on bidding behaviour. Second, we account for differing levels of common-value components. Third, we investigate whether the possibility of...
Persistent link: https://www.econbiz.de/10005059108
This paper investigates how firms' demand uncertainty with capacity constraints and their productivity heterogeneity affect their making-or-buying organizational choices in a general equilibrium framework with incomplete contracts. It shows that a final-good producer may adopt integrating a part...
Persistent link: https://www.econbiz.de/10009401075
Victorious alliances often fight about the spoils of war. This paper presents an experiment on the determinants of whether alliances break up and fight internally after having defeated a joint enemy. First, if peaceful sharing yields an asymmetric rent distribution, this increases the likelihood...
Persistent link: https://www.econbiz.de/10011140958
An inventor can invest research effort to come up with an innovation. Once an innovation is made, a contract is …'s investment incentives are increasing in his bargaining power. Yet, given limited liability, overinvestments may occur and the … inventor's investment incentives may be decreasing in his bargaining power. …
Persistent link: https://www.econbiz.de/10011108911
is trivial. The second-best contract is characterized and an application of the model to the choice of risky projects is …
Persistent link: https://www.econbiz.de/10005622105