rigid, non discretionary contracts. Delegation grants some flexibility in the choice of the action by the agent, but also … 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 …

problem, we introduce a triple mechanism involving political information markets, reelection threshold contracts, and … democratic elections. An information market is used to predict the long-term performance of a policy, while threshold contracts …

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

We examine “Forward Guidance Contracts”, which make central bankers' utility contingent on the precision of interest …-rate forecasts for some time. Such Forward Guidance Contracts are a flexible commitment device and can improve economic performance … renewable Forward Guidance Contracts and characterize the contracts that the government wants to offer repeatedly. These …

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 …

We consider rules (strategies, commitments, contracts, or computer programs) that make behavior contingent on an …

This paper shows that the cost of enforcing contracts governing non-financial relationships between firms affects a … firm's financing structure. We analyze the interaction between a firm's capital structure and the type of contracts it uses … an upstream party, and this intermediate good can be of high or low quality. Court-enforceable contracts can be used to …

-specific investments in each period. We show that where, under spot transaction, formal contracts have no value because of the cooperative … nature of investment, writing a simple fixed-price contract can be valuable under repeated transactions: There is a range of … parameter values in which a higher investment can be implemented only if a formal price contract is written and combined with a …