Trust between parties should drive the negotiation and design of contract: if parties did not trust each others … over time, we find that lower trust increases contract completeness. Not only contract complexity but also the verifiable …

derive the optimal contract for both experimentation and production when the agent has private information about his … asymmetric information is endogenously determined by the length of the experimentation stage. An optimal contract uses the length …

expectations of partners in a JL contract, and shame from falling short of normatively inadequate effort, under public repayment of … large treatment effects and confirms the central roles of guilt and shame. Under private repayment, a JL contract increases … effort by almost 100% relative to an IL contract. Under public repayment, effort levels are comparable under IL and JL …

, competition does not eliminate but rather exacerbates inefficiencies arising from contracting with focused agents. Common contract …

make external financing costly, the optimal contract between shareholders and employees involves some degree of risk …

-invest in early construction, seeking a renegotiation thereafter. We show that, in a renegotiation-proof contract, the marginal …