optimal contract duration. We study the trade-off between contracting costs due to repeated bilateral bargaining and the risk … of transaction cost economics, whereas the need for flexibility reduces contract duration. With increasing bilateral … trading experience between the same trading partners, contract duration decreases. We additionally observe that countries …

The optimal duration of a supply contract balances the costs of re-selecting a supplier against the costs of being … matched to an inefficient supplier when the contract lasts too long. I develop a structural model of contract duration that … costs. Counterfactuals illustrate the importance of accounting for the duration margin …

institutional, structural and technical variables on the duration of contracts. We find that contract duration decreases as the …