This paper extends the existing theory and empirical investigation of unitization contracts. It highlights the … importance of incentive-compatibility and self-enforcement and the bargaining problems faced in achieving viable, long …-term contracts. We argue that only if the parties to a unitization contract have unit production shares that are the same as their …

investigate this claim using a simple model of Bayesian learning. Two individuals with different priors observe the same infinite … implications for economic behavior in a range of circumstances. We illustrate how the type of learning outlined in this paper … trading and bargaining …

enforcement behavior in a market with incomplete contracts and repeated interactions. Dismissal barriers are shown to have a …

structure of venture capital contracts and the reasons for the diversity of claims …

an asset that has greater value if owned by the principal than by the agent. When contracts can be renegotiated, a well … countervailing effect: Investment by the agent can increase his value for the asset, thus improving his bargaining position in … renegotiation. We show that option contracts will achieve the first best whenever this threat-point effect dominates the holdup …

We examine commonly observed forms of payment, such as milestones, royalties, or consulting contracts as ways of …, royalties are not optimal unless the licensing firm is risk averse. The model also predicts the use of consulting contracts … which improve the firm's ability to monitor inventor effort. Because these contracts increase the firm's expected profits …

post contract renegotiation and find that the renegotiation of contracts in response to cost shocks is widespread, despite …