Contract law and the economics of contract have, for the most part, developed independently of each other. In this … essay, we briefly review the notion of a contract from the perspective of lawyer, and then use this framework to organize … the economics literature on contract. The title, Contracts between Legal Persons, limits the review to that part of …

two economically equivalent contracts - a fixed-term renewable and an open-ended at-will contract. Each contract provides … partners with full flexibility regarding the length and termination of their interaction. When only one contract type is … contract type. However, when both contracts are available offering a fixed-term instead of an open-ended contract is perceived …

incomplete contract. It is shown that the efficiency of these solutions is very sensitive to the characteristics of the good or … increasing the quality of law. -- contract ; law and economics ; reputation ; repeated games ; incomplete contracts … ; transactions costs ; institutional economics ; contract enforcement …

example of how markets, as opposed to private negotiations, can be used to determine efficient contract terms. -- law and …

We present a wage-hours contract designed to minimize costly job turnover given investments in on the job training …

extra one-time bonus tied to output. Under the bonus contract, we observe bunching of performance just above the bonus … workers gain experience. At the same time, the bonus contract induces considerable learning-by-doing for workers throughout … bunching. In contrast, under the standard piece rate contract, we find minimal evidence of bunching and only small performance …

wage premium serves to achieve contract efficiency. For those weekly hours for which a premium is paid, worker compensation …