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We study a contracting model with unforeseen contingencies in which the court is an active player. Ex-ante, the contracting parties cannot include the risky unforeseen contingencies in the contract they draw up. Ex-post the court observes whether an unforeseen contingency occurred, and decides...
Persistent link: https://www.econbiz.de/10014035961
Should the buyer of a customized good use competitive bidding or negotiation to select a contractor? To shed light on …
Persistent link: https://www.econbiz.de/10014032747
We examine the implications of different contractual forms for welfare as well as for firms’ profits in a framework in which a vertically integrated firm sells its good to an independent downstream firm. Under downstream Bertrand competition, the standard result of the desirability of two-part...
Persistent link: https://www.econbiz.de/10013225988
alternative interventions: replacing the courts by arbitrators; ex ante altering negotiation power; corporatist solutions …
Persistent link: https://www.econbiz.de/10014116505
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Based on interviews and a questionnaire administered to 25 factory directors in November 1988, this study investigates factors that determine the bargaining power of large and medium-sized Chinese factories. It shows that directors of larger, higher-ranking factories are more successful in...
Persistent link: https://www.econbiz.de/10014218764
The role of water has featured prominently in the Israeli-Palestinian negotiation process, and in Arab-Israeli disputes … value of the water in dispute, and concludes that a trade of "water for peace" should be eminently possible. Here, we … important actors at this level, creates a further difficulty for negotiating a resolution of any dispute. Even if a trade at the …
Persistent link: https://www.econbiz.de/10014037036
We propose a unified framework to study relational contracting and hold-up problems in infinite horizon stochastic games. We first illustrate that with respect to long run decisions, the common formulation of relational contracts as Pareto-optimal public perfect equilibria is in stark contrast...
Persistent link: https://www.econbiz.de/10013087220
I study the effect of timing of negotiation on the resolution of the hold-up problem. I show that the investor can … invest optimally, if the non-investor can commit to initiate negotiation in a specific time period. This way I demonstrate … that contracting parties can use negotiation timing clauses in incomplete contracts to attenuate or completely resolve the …
Persistent link: https://www.econbiz.de/10012895110