incomplete contract. It is shown that the efficiency of these solutions is very sensitive to the characteristics of the good or …

This paper quantifies a tenant-side "split incentives" problem that exists when the largest commercial sector customers … previous split incentives papers, and is robust when exposed to several opportunities to fail. The electricity reduction in …

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

alternatives to punishment exist, such as offering positive incentives or handing out awards for law abiding behavior. These …This paper argues that the Economics of Crime concentrates too much on punishment as a policy to fight crime, which is … unwise for several reasons. There are important instances in which punishment simply cannot reduce crime. Several feasible …

and moral hazard. Forgetting a default typically makes incentives worse, ex-ante, because it reduces the punishment for …In many countries, lenders are not permitted to use information about past defaults after a specified period of time … increases the incentive to exert effort to preserve this reputation. Our key result is that if (i) borrowers' incentives are …

In a continuous-time framework we study the technology and investment choice problem of a continuous co …

Research examining the effect of weak punishment on conformity indicates that punishment can backfire and lead to … of social norms and their interplay with weak punishment in the context of a trust game. Across six conditions, we … systematically vary the combination of existence of weak punishment and norm information. Norm information may refer either to what …