Search Results - subject:"Incomplete contracts"

On the Legitimacy of Coercion for the Financing of Public Goods

Bierbrauer, Felix - Fondazione ENI Enrico Mattei (FEEM) - 2009

The literature on public goods has shown that efficient outcomes are impossible if participation constraints have to be respected. This paper addresses the question whether they should be imposed. It asks under what conditions efficiency considerations justify that individuals are forced to pay...

Persistent link: https://www.econbiz.de/10008502099

Contract Incompleteness, Globalization and Vertical Structure: an Empirical Analysis

Pascali, Luigi - Department of Economics, Boston College - 2009

, and the extent of vertical integration from a simple model with incomplete contracts. Then it investigates these …

Persistent link: https://www.econbiz.de/10008491340

Strategic Effects of Incomplete and Renegotiation-Proof Contracts

Kockesen, Levent; Gerratana, Emanuele - İktisat Bölümü, İktisadi ve İdari Bilimler Fakültesi - 2009

It is well known that non-renegotiable contracts with third parties may have an effect on the outcome of a strategic interaction and thus serve as a commitment device. We address this issue when contracts are renegotiable. More precisely, we analyze the equilibrium outcomes of twostage games...

Persistent link: https://www.econbiz.de/10008528569

Toc ’n’ Roll: Bargaining, Service Quality and Specificity in the UK Railway Network

Fraja, Gianni De; Michetti, Emanuela; Zanchettin, Piercarlo - Department of Economics, Leicester University - 2009

2;L1;L5;L92 Keywords: Network regulation, Railways, Incomplete contracts, Relation specific investment. ∗ We wish to … the theoretical literature on incomplete contracts. 6 This is based on the idea that 4 “Engines and carriages have a … however a conceptually diﬀerent nature from the investment in the incomplete contracts literature. The cost of specificity is …

Persistent link: https://www.econbiz.de/10005230648

International Trade, Factor Mobility and the Persistence of Cultural-Institutional Diversity

Belloc, Marianna; Bowles, Samuel - Dipartimento di Economia e Diritto, Facoltà di Economia - 2009

Cultural and institutional differences among nations may result in differences in the ratios of marginal costs of goods in autarchy and thus be the basis of specialization and comparative advantage, as long as these differences are not eliminated by trade. We provide an evolutionary model of...

Persistent link: https://www.econbiz.de/10009649986

Gift Exchange and Workers' Fairness Concerns - When Equality Is Unfair

Abeler, Johannes; Altmann, Stefen; Kube, Sebastian; … - Centre for Decision Research and Experimental Economics … - 2009

We study how different payment modes inuence the effectiveness of gift exchange as a contract enforcement device. In particular, we analyze how horizontal fairness concerns affect performance and efficiency in an environment characterized by contractual incompleteness. In our experiment, one...

Persistent link: https://www.econbiz.de/10010552264

Contracts as Threats: on a Rationale For Rewarding A while Hoping For B

Iossa, Elisabetta; Spagnolo, Giancarlo - Centro di Studi Internazionali Sull'Economia e la … - 2009

In this paper we explore theoretically the relationship between explicit and implicit/relational contracting distinguishing between the ex-ante decision to sign an explicit contract and the ex-post decision wheter to actually apply it. We show, among other things, that the relational efficient...

Persistent link: https://www.econbiz.de/10008566326

On the legitimacy of coercion for the financing of public goods

Bierbrauer, Felix - Max-Planck-Institut zur Erforschung von … - 2009

-maximizing rm. This also makes par- ticipation constraints desirable. Keywords: Public goods, Mechanism Design, Incomplete Contracts … incomplete contracts perspective. More speci cally, the second part of the paper is based on an extended model in which there are …. Consequently, individuals prefer the imposition of strong participation constraints, i.e., in the incomplete contracts model, the …

Persistent link: https://www.econbiz.de/10008567935

Global Sourcing Decisions and Firm Productivity: Evidence from Spain

Kohler, Wilhelm; Smolka, Marcel - CESifo - 2009

We investigate the link between productivity of firms and their sourcing behavior. Following Antràs & Helpman (2004) we distinguish between domestic and foreign sourcing, as well as between outsourcing and vertical integration. A firm’s choice is driven by a hold-up problem caused by lack of...

Persistent link: https://www.econbiz.de/10008572568

On and Off Contract Remedies

Brooks, Richard; Stremitzer, Alexander - Volkswirtschaftliche Fakultät, … - 2009

A party dissatisfied with the contractual performance of a counterparty is typically able to pursue a variety of legal recourses. Within this apparent variety lurk two fundamental alternatives. The aggrieved party may (i) â€œaffirmâ€ the contract and seek money damages or specific...

Persistent link: https://www.econbiz.de/10008587458