contract framing effect in either condition: effort provision is statistically indistinguishable under bonus and penalty …

experiment, we study behavior in a contract farming game without third-party enforcement but with an external spot market as … outside option. Two players, farmer and company, may conclude a contract but also breach it by side-selling or arbitrary …-order enforcement. Moreover, we investigate whether company players offer price premiums to extend the contract’s self-enforcing range …

of a contract presumption, whereby the nominal beneficiary must obtain the contractual consent from the other side before … benefiting from the rule. The experiment tends to confirm the Coasean prediction that contract presumptions do not affect the … efficiency of bargains. The results question, however, the Coasean wisdom that contract presumptions should not affect the …

Under common law, the standard remedy for breach of contract is expectation damages. Under continental law, the …