In many capital-intensive markets, sellers sign long-term contracts with buyers before committing to sunk cost … investments. Ex-ante contracts mitigate the risk of under-investment arising from ex-post bargaining. However, contractual … trade-off, focusing on the liquefied natural gas (LNG) industry, where long-term contracts account for over 70% of trade. I …

Tournaments are commonly used in the workplace to determine promotion, assign bonuses, and motivate personal … development. Tournament-based contracts can be very effective in eliciting high effort, often outperforming other compensation … contracts, but they can also have negative consequences for both managers and workers. The benefits and disadvantages of …