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 …

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 …

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 … relational contract. We also show that there are cases in which not writing a formal contract but entirely relying on a …

each period. In contrast to previous findings, we demonstrate that writing a simple fixed-price contract based on product … values in which a higher investment can be implemented only if a formal fixed-price contract is written and combined with an …

. Agents decide on a contract-specific and non-verifiable investment. Incentive compatibility requires that initial contracts …

principal maximizes profits by offering a menu of contracts to naive agents: a virtual contract - which agents plan to choose in … the future - and a real contract which they end up choosing. This virtual contract motivates the agent and allows the …