One of the major contract innovation in liability insurance during the liability crisis of the early 1980s was the introduction of claims-made and reported insurance contracts. Typical insurance contracts are based on loss occurrence (i.e., occurrence-based contracts), which means that a loss...

Empirical studies point to trade credit as an important continuing source of short term financing for small and medium-sized enterprises. We show that vendor financing appears in equilibrium as the result of repeated trade interactions between a buyer and a supplier when changing supplier is...

This paper studies the implications of non-commitment for organizational design. An organizational form must trade-off between the coordination benefits associated with the centralization of information and its associated costs in terms of renegotiation. The analysis makes precise what these...