Nobel for their fundamental contributions to contract theory. This article offers a short summary and discussion of their …

, which offer important new insights into the interaction of contract choices, fairness and incentives. …

-seller relationship with renegotiation. Our paper provides causal experimental evidence that an initial contract has a highly significant … threatpoints. We compare situations in which an initial contract is renegotiated to strategically equivalent bargaining situations … in which no ex ante contract was written. The ex ante contract causes sellers to ask for markups that are 45 percent …

this and predominantly choose the bonus contracts, even preferring a pure bonus contract over a contract that combines the … enforcement power of explicit and implicit incentives. This contract preference is associated with the fact that explicit … recently developed theories of fairness, which also offer interesting new insights into the interaction of contract choices …

-term contract that has to be renegotiated after the realization of the state of the world, they take the initial contract as a …-term contracts. First, it explains why parties often abstain from writing a beneficial long-term contract or why some contracts … allocation of ownership rights to protect relationship-specific investments rather than writing a specific performance contract …

-term contract that has to be renegotiated after the realization of the state of the world, they take the initial contract as a …-term contracts. First, it explains why parties often abstain from writing a beneficial long-term contract or why some contracts … allocation of ownership rights to protect relationshipspecific investments rather than writing a specific performance contract …

initial contract has a highly significant and economically important impact on renegotiation behavior that goes beyond the … effect of contracts on bargaining threatpoints. We compare situations in which an initial contract is renegotiated to … strategically equivalent bargaining situations in which no ex ante contract was written. The ex ante contract causes sellers to ask …