specify the reinsurance contract by solving a system of coupled Hamilton-Jacobi-Bellman equations. We obtain explicit … solutions for the game problem when both the insurance and the reinsurance premiums are calculated according to the standard … reinsurance contract is either provided with a peak price when the insurer has sufficient cash reserve and with a minimum price …

contracts. The optimal contract is derived as a result of the optimizing actions of purely self-interested agents, and agents … that act according to social or egoistic preferences. The analysis finds that buyers' preferences do not affect contract …

contract renegotiations. I study whether the demand for monitoring determines the renegotiation intensity, defined as either … contract renegotiation trades off the benefits of enhanced monitoring with the costs of suboptimal creditor intervention …

rationality, that aims to explain rejections. When fairness considerations are private information, we derive an optimal contract … and characterize conditions in which this optimal contract implies rejections. Thus, our major finding is that when …

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 …