enforceable contracts is costly. A contract can describe contingencies and actions at a more or less detailed level, and the cost … of writing a contract is proportional to the amount of detail. We consider both formal (externallyenforced) and informal …

Nobel for their fundamental contributions to contract theory. This article offers a short summary and discussion of their …

optimal contract duration. We study the trade-off between contracting costs due to repeated bilateral bargaining and the risk … of transaction cost economics, whereas the need for flexibility reduces contract duration. With increasing bilateral … trading experience between the same trading partners, contract duration decreases. We additionally observe that countries …

the signals relative to the variance of the trembles captures the degree of contract secrecy. We find that a higher degree …

of enforceability that inhibits an agent's ability to renege on the contract and a level of auditing that inhibits his … ability to conceal income. The dynamics of the optimal contract imply an endogenous lower bound on the lifetime utility and … consumption of an agent, strictly positive auditing at all points in the contract and positive enforcement only when the agent …