This paper studies how firms react to electoral violence. Predictions derived from a model of firms reaction to violence are tested using Kenya flower exporters during the 2008 post-election violence. The violence reduced exports primarily through workers' absence and had heterogenous e ffects:...

How does competition affect market outcomes when formal contracts are not enforceable, and parties resort to relational contracts? Difficulties with measuring relational contracts and dealing with the endogeneity of competition have frustrated attempts to answer this question. We make progress...