efficiency is not attainable. We show that contracts involving mutual control might sometimes be superior to the best contract …

re-negotiated. Foreseeing this, the parties to the contract will write one that is renegotiation-proof. Under such a … contract, nominal shocks affect real consumption. Since the argument should apply in many situations, it will have …

We estimate the impact of venture capital (VC) contract terms on startup outcomes and the split of value between the … power to receive more investor-friendly terms compared to the contract that maximizes startup values. Better VCs still …

drift in continuous time. The difficulty in writing an appropriate financial contract in this setting is that the agent can … long-term contract specifies the agent's wage and can force termination of the project. Using techniques from stochastic … calculus similar to Sannikov (2003), we characterize the optimal contract by a differential equation. We show that this …

procedures. A noisy signal, however, means that the optimal contract will involve terms that courts might view as punitive and so …

In this paper I explore optimal employment contract design in a random search framework, where workers search on and …

the sequence of events is as follows. In a period, t, the supplier offers a contract to the retailer, and the retailer … excess inventory (we assume a lost sales model) to the next period. In period t 1, the supplier designs a new contract based … certain assumptions, we characterize and evaluate the supplier's optimal contract. To do so, we cast our problem as an adverse …

Weak contract enforcement may reduce the efficiency of investment in developing countries. I study how contract … post contract renegotiation and find that the renegotiation of contracts in response to cost shocks is widespread, despite … strict contract enforcement. Contract enforcement is found to be pro-competitive. With no renegotiation, equilibrium bids …