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Relational Contract Theory and Management Contracts : A Paradigm for the Application of the Theory of the Norms

Diathesopoulos, Michael D. - 2012

This paper examines management contracts as a paradigm for the application of relational contracts theory and especially of the theory of contractual and relational norms. This theory, deriving from Macauley's implications, but structured and analysed by I.R. MacNeil gives us a framework for the...

Persistent link: https://www.econbiz.de/10013116026

Sticks and Carrots : The Effect of Contract Frame on Effort in Incomplete Contracts

Christ, Margaret H. - 2012

In this study we examine the effect of incentive contract framing on agent effort in an incomplete contract setting … contracts relative to bonus contracts. However, in an incomplete contract setting, in which the incentive contract does not … incentive contract, such that bonus contracts elicit greater effort on these tasks as compared to penalty contracts. We develop …

Persistent link: https://www.econbiz.de/10013104780

Incomplete Contracts, Self-Investments, Asymmetric Information, Breach of Contract and the Legal Remedies

Bag, Sugata - 2008

In the early models of incomplete contract neither party used to invest in the subject matter of the contract; those … realize subsequent to a binding contract, a systematic analysis has been attempted to see - first, how the legal remedies can … role than that has been realized. Focus remains on the ex-ante design of the contract, which would serve as an implicit …

Persistent link: https://www.econbiz.de/10012723830

Learning in Relational Contracts

Kostadinov, Rumen - 2018

We study relational contracts in a firm-worker relationship with mutual uncertainty about match quality. The worker's actions are publicly observed and generate output, and hence information about the match quality. Despite the absence of private information, uncertainty about match quality...

Persistent link: https://www.econbiz.de/10012935641

Managing Relational Contracts

Troya-Martinez, Marta - 2018

Relational contracts are typically modeled as being between a principal and an agent, such as a firm owner and a supplier. Yet in a variety of organizations relationships are overseen by an intermediary such as a manager. Such arrangements open the door for collusion between the manager and the...

Persistent link: https://www.econbiz.de/10012937239

Contract, Renegotiation, and Holdup : When Should Messages Be Sent?

Göller, Daniel - 2018

I consider a canonical bilateral trade setting in which the agents can exert non-verifiable investments, before they play a revelation mechanism and subsequently advance to the trading stage, where they take nondurable actions. Watson (2007) has demonstrated in a similar setting that the set of...

Persistent link: https://www.econbiz.de/10012938074

Trust and Contracting

Hilary, Gilles - 2015

Prior research has shown that trust has a positive effect on the economic welfare of nations. We investigate this result by analyzing the effect of endowed trust on agency problems within organizations. We find that firms located in U.S. counties where trust is more prevalent suffer less from...

Persistent link: https://www.econbiz.de/10013022888

Contracting with Opportunistic Partners : An Incomplete Contracts Approach

Casas-Arce, Pablo - 2016

After a contract is signed, contracting partners may engage in opportunistic behavior that circumvents the original … contract). We use an incomplete contracts approach to show that the anticipation and observability of such behavior are … conditions for the optimality of incomplete contracts, a simple characterization of the second-best contract, and some …

Persistent link: https://www.econbiz.de/10012985153

Relational contracts and trust in a high-tech industry

Calzolari, Giacomo; Felli, Leonardo; Koenen, Johannes; … - 2021

We study how informal buyer-supplier relationships in the German automotive industry affect procurement. Using unique data from a survey focusing on these, we show that more trust, the belief that the trading partner acts to maintain the mutual relationship, is associated with both higher...

Persistent link: https://www.econbiz.de/10012649766

Theoretical foundations of relational incentive contracts

Watson, Joel - In: Annual review of economics 13 (2021), pp. 631-659

Persistent link: https://www.econbiz.de/10012612595