Martimort, David; Semenov, Aggey; Stole, Lars - Volkswirtschaftliche Fakultät, … - 2014
We present a Theory of Contracts under costly enforcement in the context of a dynamic relationship between an … uninformed buyer and a seller who is privately informed on his persistent cost at the outset. Public enforcement relies on … remedies for breach. Private enforcement comes from severing relationships. We first characterize aggregate enforcement …