possible outcomes, a flexible contract allows for future adaptation but is associated with ex post haggling cost. By specifying … a single outcome, a rigid contract eliminates future disagreement but precludes beneficial adjustments to the occurring … less egalitarian ones. -- foreign direct investment ; cross-country cultural differences ; egalitarianism ; risk …

, oftentimes contract forms are chosen that do not fit participant's (owners', contractors') competences and risk capabilities. In … this paper, MIPP order contract forms are evaluated for the most common settings of owners and contractors with respect to … MIPP are laid-out. Focusing on the main order contract, the involved parties are termed, introducing a "standard situation …

, we study the implications of the interaction between incentive compatibility and participation constraints for risk … endowment shock is small enough, the optimal contract prevents agents from reaching autarky tomorrow and, thus, from being …

risk-sharing and moral hazard is far from settled. Moreover, existing empirical study very often plague by selection … decision and contract choice are simultaneous. A modified Heckman model is estimated which avoids the selectivity bias of … observed contracts. Empirical tests reject the hypothesis of pure risk sharing and a wide range of support for the presence of …

that one party is risk neutral while the other is risk averse. This paper describes a real-world contract that is widely … used - the movie exhibition contract - and argues that asymmetric information is not the main feature of the environment … that leads to sharing. The explanation that fits the facts better is simply that distributors and exhibitors are both risk …

likely to differ in their tolerance for risk. In this paper, I investigate a contracting scheme designed to mitigate the … asymmetric information problem where agents are heterogeneous in their tolerance for risk. Mechanisms that recognize the …' private information about risk tolerance, offer a sensible way to approach the problem. These contracts are generally a …

decline. While participating contracts embedding these guarantees are designed to share market risk across investor cohorts … when guarantees are not binding, we study how binding guarantees distort inter-cohort risk sharing. Using regulatory data …