likely to differ in their tolerance for risk. In this paper, I investigate a contracting scheme designed to mitigate the … asymmetric information problem where agents are heterogeneous in their tolerance for risk. Mechanisms that recognize the …' private information about risk tolerance, offer a sensible way to approach the problem. These contracts are generally a …

I analyze a model in which a principal offers a contract to an agent and can influence the agent's marginal return of …

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 …

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 …

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