This paper contends that there is an important distinction between governance structure and contractual form, and that organizational boundaries, defined by governance structures, need not explain contractual form. The basic idea is that governance refers to the general environments and...

The purpose of this paper is to model trust in a principal-agent relationship in which the alternative to trusting is a costly action taken by a principal to observe and verify an agent's performance. In this model a decision not to trust is a decision to monitor rather than quit, where...

This paper examines the concepts of trust and trustworthiness in the context of a one-sided variation of the prisoner's dilemma, and it evaluates four different categories of solutions to the PD problem: changing player preferences, enforcing explicit contracts, establishing implicit contracts,...

In this paper I present an approach to teaching about and defining bribery that starts with the presumption that a payment, once defined as a "bribe," is prima facie unethical. That is, I make no distinction between "good bribes" and "bad bribes." In short, bribery cannot be justified. In this...

This paper presents a model of trust in which a principal chooses either to trust or monitor an agent who, in turn, chooses either to honor or exploit that trust. The principal's decision of whether to trust or monitor is based on the relative temptation an agent faces to exploit the principal's...

This paper examines the concepts of trust and trustworthiness in the context of a one-sided variation of the prisoner's dilemma, and it evaluates four different categories of solutions to the PD problem: changing player preferences, enforcing explicit contracts, establishing implicit contracts,...

In this paper we explain the use of explicit contracts of employment, particularly those that embody high- rather than low-powered incentives and clauses that supersede the common law defaults. Our analysis is based on an understanding of two fundamental problems that arise when agency...

The purpose of this paper is to show that the common law governing the employment of labor makes the distinction not only between employee and independent contractor but also between managerial control and agency. The idea is that common law precedents govern workers who are employed and...

There are two competing approaches to sustainability in agriculture. One stresses a strict economic approach in which market forces should be allowed to guide the activities of agricultural producers. The other advocates the need to balance economic with environmental and social objectives, even...

Self-selection bias occurs when there is non-random sampling of membership within a group or category, such as employment status, that is hypothesized to affect a variable of interest, such as ethical attitudes or behaviors. Self-selection bias is germane to a variety of important business...