Joint ventures and venture companies present examples of the incomplete contract for economists and the relational contract for legal scholars. Although they have different practical settings, they share the issue of how parties manage the incentive for cooperation. The parties' ultimate goal is...

The biggest difference in the incentive bargains between entrepreneurs and venture capitalists in the US and Japan is that American entrepreneurs abandon control while Japanese entrepreneurs do not. Years ago, Black & Gilson tried to explain the difference by the existence and non-existence of...