Work and trade relationships are often governed by relational contracts, in which incentives for cooperative action …. This can impede the joint understanding of what constitutes cooperative behavior, and may thus inject mistrust into …

requires the use of an appropriate incentive contract so as to realign his interests with those of the principal. The parties … of the optimal flexible contract both when the parties have sharp probabilistic beliefs over the possible events in which … risk aversion, the higher the agency costs for delegation and hence the less profitable is a flexible contract versus a …

an implicit contract is the threat of exclusion: the agent fears that he will lose future income if the principal breaks …

drives low-productivity firms from the small country's home market, replacing them with high-productivity exporters from … abroad. This endogenous policy response creates a selection effect that increases the average productivity of home firms when …

We develop a theory of a firm in an incomplete contracts environment which decides on its complexity, organization, and …

elsewhere) can be used by multinational firms which have different productivity to serve the market abroad when product chains … abroad by either horizontal or vertical FDI. Upon opening a market to trade, firms with the lowest productivity will exit …, those with intermediate productivity will export, and those with higher productivity will choose fragmentation. Among the …