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 …

In the early models of incomplete contract neither party used to invest in the subject matter of the contract; those … models primarily kept their focus on analyzing the effect of legal rules on parties' incentives to trade or to breach. The … realize subsequent to a binding contract, a systematic analysis has been attempted to see - first, how the legal remedies can …

Two parties sign a contract but before they fully perform they modify the contract. Should courts enforce the modified … to write a contract that is robust to hold-up or that makes the facts relevant to modification verifiable. But … contract technology, e.g., the use of liquidated damages, to ensure commitment are disfavored by courts and subject to …

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 … incentives inevitably have conflicting effects: they simultaneously increase the likelihood of welfare-improving investments and …