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Imperfect Labor Contracts and International Trade
Grossman, Gene M. - 1999
In an economy with imperfect labor contracts, differences in the distribution of human capital are an independent source of comparative advantage. I study a world economy with two sectors, one where output is produced by teams and another where individuals can work alone. When workers' abilities...
Persistent link: https://www.econbiz.de/10012471910
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Incentives in HMOs
Gaynor, Martin - 2001
's incentive contract provides a typical physician an increase, at the margin, of $0.10 in income for each $1.00 reduction in …
Persistent link: https://www.econbiz.de/10012470196
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Financial Contracting
Hart, Oliver - 2001
This paper discusses how economists' views of firms' financial structure decisions have evolved from treating firms' profitability as given; to acknowledging that managerial actions affect profitability; to recognizing that firm value depends on the allocation of decision or control rights. The...
Persistent link: https://www.econbiz.de/10012470439
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Contract Renegotiation in Agency Problems
Edlin, Aaron S. - 1997
procedures. A noisy signal, however, means that the optimal contract will involve terms that courts might view as punitive and so …
Persistent link: https://www.econbiz.de/10012472728
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The Demise of Double Liability as an Optimal Contract for Large-Bank Stockholders
Wilson, Berry K. - 1996
liquidation tied to the par value of the bank's capital. Our tests show that optimal contracting theory can provide an explanation …
Persistent link: https://www.econbiz.de/10012472980
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Short-Term Contracts as a Monitoring Device
Rey, Patrick - 1993
This paper focuses on two separate problems. The first is that frequently, the most profitable use of funds involves long-term investments, which militiates for long-term debt contracts. The second problem is to monitor the investor's use of funds, as exemplified by the U.S. S&L saga, and we...
Persistent link: https://www.econbiz.de/10012474431
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Information and the Scope of Liability for Breach of Contract : The Rule of Hadley V. Baxendale
Bebchuk, Lucian Arye - 1991
According to the contract law principle established in the famous nineteenth century English case of Hadley v …. Baxendale, and followed ever since in the common law world, liability for a breach of contract is limited to losses "arising …, at the time they made the contract, ..." Using a formal model, we attempt in this paper to analyze systematically the …
Persistent link: https://www.econbiz.de/10012475310
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Bilateral Contracts
Green, Jerry R. - 1981
efficiency is not attainable. We show that contracts involving mutual control might sometimes be superior to the best contract …
Persistent link: https://www.econbiz.de/10012478394
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Risk Sharing through Breach of Contract Remedies
Polinsky, A. Mitchell - 1981
This paper examines the sharing of risk under three different remedies for breach of contract. The risk considered …. By means of a numerical example, it is shown that use of the prevailing remedy for breach of contract -- the expectation …
Persistent link: https://www.econbiz.de/10012478401
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Overcoming Contractual Incompleteness : The Role of Guiding Principles
Frydlinger, David - 2019
We consider a buyer and seller who contract over a service. The contract encourages investment and provides a reference … point for the transaction. In normal times the contract works well. But with some probability an abnormal state occurs and … guiding principles such as loyalty and equity in their contract can help. We provide supporting evidence in the form of case …
Persistent link: https://www.econbiz.de/10012480189