relationship breakdown risks. When contract enforcement institutions are weak, the optimal within-relationship provision dynamics …

A loss-averse buyer and seller face an uncertain environment. Should they write a long-term contract or wait until the … the long-term contract constitutes the reference point to which the parties compare gains and losses induced by the … renegotiated transaction. Whereas Herweg and Schmidt consider that the long-term contract is always performed, it should not in …

A loss averse buyer and seller face an uncertain environment. Should they write a long-term contract or wait until the … the long-term contract constitutes the reference points to which the parties compare gains and losses of the renegotiated … transaction. Whereas Herweg and Schmidt assume that the long-term contract is always performed, it is actually preferably that it …

Trust between parties should drive the negotiation and design of contract: if parties did not trust each others … over time, we find that lower trust increases contract completeness. Not only contract complexity but also the verifiable …