shock and a discretionary buyer transfer. In the absence of communication, we find that rigid contracts are more frequent … and lead to higher earnings for both buyer and seller. By contrast, in the presence of communication, flexible contracts … considerably more from flexible with communication than rigid without communication. Our results show quite strongly that …

communication treatments, in which one of the stakeholders states his or her opinion prior to the allocation decision, to a baseline … without communication opportunities. We find that stakeholders who state their opinion in the communication treatments are …