incomplete contract. It is shown that the efficiency of these solutions is very sensitive to the characteristics of the good or …

Contract law and the economics of contract have, for the most part, developed independently of each other. In this … essay, we briefly review the notion of a contract from the perspective of lawyer, and then use this framework to organize … the economics literature on contract. The title, Contracts between Legal Persons, limits the review to that part of …

previously thought. Indeed, modeling “expectation damages” close to legal practice, we show that the default remedy of contract …

its valuation. A simple exit option contract, which allows the buyer to refuse trade, achieves the firstbest in the … asymmetric information are combined, exit options induce inefficient pooling and lead to a particularly simple contract …

initial contract is modified if one party in the relationship has a credible threat to quit or to shut down the firm. In …

This paper develops a model of child custody based on an incomplete-contract approach to the allocation of property … rights. Because of the presence of transaction costs in marriage, altruistic parents cannot contract upon the investments …