derive the optimal contract for both experimentation and production when the agent has private information about his … asymmetric information is endogenously determined by the length of the experimentation stage. An optimal contract uses the length …

illustrated by means of two games: a public goods game in which each player simultaneously offers a menu contract to a common …

information of local jurisdictions. Contractual federalism is defined as a strategy-proof contract among the members of the …

reputation serves as a collateral against opportunism in the absence of contract enforcement …

Under weak contract enforcement the trading parties’ trust, defined as their belief in other’s trustworthiness, appears … important for realizing gains from trade. In contrast, under strong contract enforcement beliefs about other’s trustworthiness … appear less important, suggesting that trust and contract enforcement are substitutes. Here we show, however, that trust and …