The extent to which teachers and school directors are held to account may play a central role in determining education outcomes, particularly in developing and transition countries where institutional deficiencies can distort incentives. This paper investigates the relationship between an...

The authors examine how institutions that enforce contracts between two parties-producers and consumers-interact in a competitive market with one-sided asymmetric information and productivity shocks. They compare an informal enforcement mechanism, reputation, the efficacy of which is enhanced by...