The use of standard contracts is usually explained by generic transaction costs. In a model where more resourceful parties can distort enforcement, we show that standard contracts reduce enforcement distortions by simplifying judicial interpretation of preset terms, training judges on a subset...

By combining two large data sets (on international trade flows and cross-border mergers and acquisitions - M&As), we test two implications of Neary’s (2003, 2007) general oligopolistic equilibrium (GOLE) model (incorporating strategic interaction between firms in a general equilibrium...