given period, after having observed her income, the agent can walk away from the contract, while the intermediary cannot, i … partial and full insurance can obtain, depending on the relative patience of agents and financial intermediaries. Insurance … can be provided because in an equilibrium contract an up-front payment effectively locks in the agent with an intermediary …

This Article argues that freedom of contract will take on different meaning in a world in which ubiquitous information … about places, goods, people, firms and contract terms is available to contracting parties anywhere, any time. In particular … thereby strengthens traditional understandings of freedom of contract as enforcing contracts as written. This is largely a …

its implications for contract design. The sunk cost fallacy can lead to over-consumption and escalation of commitment. We …. Therefore, a firm's optimal pricing contract has to balance the demand for flexibility due to the sunk cost fallacy and the … first decreases and then increases with the sunk cost fallacy. We compare the optimal fixed-fee contract with a pay …

incentivize them to invest in contract simplification and forego strategic obfuscation. As a result, the costs to consumers of …

-utility we provide a complete analytical characterization of the optimal consumption insurance contract, the stationary … accumulation in which households can insure against idiosyncratic income risk through long-term insurance contracts. Insurance … unique stationary equilibrium with partial consumption insurance and a stationary consumption distribution that takes a …

Private information and limited enforcement are two frictions that impede the provision of first best insurance against … or infinitely costly. I consider a principal agent model of efficient insurance in which the principal can choose a level … of enforceability that inhibits an agent's ability to renege on the contract and a level of auditing that inhibits his …

We study an optimal long-term labor contract that provides disability insurance benefits under two frictions: the agent … cannot commit to a long-term contract and the disability shock is private information. We predict that a job with a high risk … contract can be implemented under a three-account trading system in which mandatory savings can be imposed to discourage a …

given period, after having observed her income, the agent can walk away from the contract, while the intermediary cannot, i … partial and full insurance can obtain, depending on the relative patience of agents and financial intermediaries. Insurance … can be provided because in an equilibrium contract an up-front payment e.ectively locks in the agent with an intermediary …

given period, after having observed her income, the agent can walk away from the contract, while the intermediary cannot, i … partial and full insurance can obtain, depending on the relative patience of agents and financial intermediaries. Insurance … can be provided because in an equilibrium contract an up-front payment effectively locks in the agent with an intermediary …