risk aversion, the higher the agency costs for delegation and hence the less profitable is a flexible contract versus a … requires the use of an appropriate incentive contract so as to realign his interests with those of the principal. The parties …' understanding of the possible circumstances in which actions will have to be chosen and their attitude towards risk and uncertainty …

the fairs. It finds that contract enforcement at the fairs did not take the form of private-order or corporative …

costlessly observable, then it should be included in the contract to improve the risk sharing-incentive trade-off under moral … that hardly explains the many features of an insurance contract. We extend this setup to include the situation that the … resulting incompleteness of the contract opens the door to controversies and disputes that may lead to judicial procedures. We …

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

Neither marriage nor a legally enforceable contract serves any useful purpose if the parties have access to a perfect … enforceable contract. Separate-property marriage may reduce and community-property marriage actually eliminate inefficiency, but …

A principal uses security bid auctions to award an incentive contract to one among several agents in the presence of … call a fixed wage contract, tends to outperform all other auctions, although it is not an optimal mechanism. However, by …