During contractual negotiations, parties often make (reliance) expenditures that would increase the surplus should a … contract be made. This paper analyzes decisions to invest in pre-contractual reliance under alternative legal regimes … preliminary understandings reached by the parties. Our results have implications, which we discuss, for various contract doctrines …

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

induces more generous contract terms from the seller. When discrimination and communication are possible, the exclusion rate …

the case of negotiations over work rules and wages than in both the cases of fully efficient bargaining and of bargaining …