Narrow search
Showing 1 - 10 of 474
Cover Image
Formal Contracts, Relational Contracts, and the Threat-Point Effect
Itoh, Hideshi - 2011
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 …
Persistent link: https://www.econbiz.de/10013121866
Cover Image
Contracts Offered by Bureaucrats
Khalil, Fahad - 2018
We examine the power of incentives in bureaucracies by studying contracts offered by a bureaucrat to her agent. The bureaucrat operates under a fixed budget, optimally chosen by a funding authority, and she can engage in policy drift, which we define as inversely related to her intrinsic...
Persistent link: https://www.econbiz.de/10012938445
Cover Image
Nitpicky Insurers and the Law of Contracts
Bourgeon, Jean-Marc - 2017
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 …
Persistent link: https://www.econbiz.de/10012945057
Cover Image
Observable Strategies, Commitments, and Contracts
Warneryd, Karl - 2021
We consider rules (strategies, commitments, contracts, or computer programs) that make behavior contingent on an opponent’s rule. The set of perfectly observable rules is not well defined. Previous contributions avoid this problem by restricting the rules deemed admissible. We instead limit...
Persistent link: https://www.econbiz.de/10013315559
Cover Image
Optimal Contracts for Discouraging Deforestation with Risk Averse Agents
Mason, Charles F. - 2018
There is an emerging consensus that carbon emissions must be limited. An attractive approach to promoting carbon reductions is to encourage reductions in deforestation. But any such strategy must confront a basic problem: agents that might be induced to reduce their actions which would reduce...
Persistent link: https://www.econbiz.de/10012914953
Cover Image
The Optimal Duration of Contracts
Poutvaara, Panu - 2018
. Agents decide on a contract-specific and non-verifiable investment. Incentive compatibility requires that initial contracts …
Persistent link: https://www.econbiz.de/10012927192
Cover Image
Cooperation and Mistrust in Relational Contracts
Herz, Holger - 2016
Work and trade relationships are often governed by relational contracts, in which incentives for cooperative action today stem from the prospective future benefits of the relationship. In this paper, we study how reductions in clarity about the financial consequences of actions, induced by...
Persistent link: https://www.econbiz.de/10012981595
Cover Image
Formal Contracts, Relational Contracts, and the Holdup Problem
Itō, Hideshi; Morita, Hodaka - 2008
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 …
Persistent link: https://www.econbiz.de/10014028957
Cover Image
Optimal Contracting with Endogenous Project Mission
Cassar, Lea - 2017
I analyze a model in which a principal offers a contract to an agent and can influence the agent's marginal return of …
Persistent link: https://www.econbiz.de/10012966930
Cover Image
Size Matters - 'Over'investments in a Relational Contracting Setting
Englmaier, Florian - 2015
The corporate finance literature documents that managers tend to overinvest into physical assets. A number of theoretical contributions have aimed to explain this stylized fact, most of them focussing on a fundamental agency problem between shareholders and managers. The present paper shows that...
Persistent link: https://www.econbiz.de/10013029509