I study the economic consequences of shifting bargaining power in relational contracts through interventions such as … market power. Existing theories of relational contracts predict that such a power transfer will have no impact on market … contracts - the existence of an enforceable base payment - may not hold. In this case, I show that a transfer of bargaining …

The theory of contracts assumes that human nature is essentially opportunistic, and economic agents protect themselves … against adverse selection and moral hazard by elaborating contracts. In the case of irrigated areas in the Brazilian northeast …, such contracts are not necessarily formal. That is, arrangements based on economic agent’s word are common. The data used …

form of vertical coordination. Rather than conventional pre-planting contracts, they issue ‘permits’ to selected cane … processing, and compare processor profits under the probabilistic ex post permit system and ex ante production contracts. The …