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Cooperation and Mistrust in Relational Contracts

Herz, Holger - 2016

Work and trade relationships are often governed by relational contracts, in which incentives for cooperative action today stem from the prospective future benefits of the relationship. In this paper, we study how reductions in clarity about the financial consequences of actions, induced by...

Persistent link: https://www.econbiz.de/10012981595

The Optimal Duration of Contracts

Poutvaara, Panu - 2018

We study the optimal duration of contracts in a principal-agent framework with both moral hazard and adverse selection …. Agents decide on a contract-specific and non-verifiable investment. Incentive compatibility requires that initial contracts …

Persistent link: https://www.econbiz.de/10012927192

Self-Allocation in Contests

Bernergard, Axel - 2017

We consider contestants who must choose exactly one contest, out of several, to participate in. We show that when the contest technology is of a certain type, or when the number of contestants is large, a self-allocation equilibrium, i.e., one where no contestant would wish to change his choice...

Persistent link: https://www.econbiz.de/10012947451

Resource Rents, Democracy and Corruption : Evidence from Sub-Saharan Africa

Arezki, Rabah - 2013

We examine the effect of the interaction between resource rents and democracy on corruption for a panel of 29 Sub-Saharan countries during the period from 1985 to 2007. We find that higher resource rents lead to more corruption and that the effect is significantly stronger in less democratic...

Persistent link: https://www.econbiz.de/10013092386

Group Contests with Internal Conflict and Power Asymmetry

Choi, Jay Pil - 2015

We investigate situations in which players make costly contributions as group members in a group conflict, and at the same time engage in contest with fellow group members to appropriate the possible reward. We introduce within group power asymmetry and complementarity in members' efforts, and...

Persistent link: https://www.econbiz.de/10013030322

An Experimental Investigation of Colonel Blotto Games

Chowdhury, Subhasish M.; Kovenock, Daniel J.; … - 2021

This article examines behavior in the two-player, constant-sum Colonel Blotto game with asymmetric resources in which players maximize the expected number of battlefields won. The experimental results support all major theoretical predictions. In the auction treatment, where winning a...

Persistent link: https://www.econbiz.de/10013316350

An Experimental Investigation of Colonel Blotto Games

Chowdhury, Subhasish M.; Dan Kovenock J.; Sheremeta, … - CESifo - 2009

Persistent link: https://www.econbiz.de/10005034634

Socially-Tolerable Discrimination

Amegashie, J. Atsu - CESifo - 2008

History is replete with overt discrimination on the basis of race, gender, age, citizenship, ethnicity, marital status, academic performance, health status, volume of market transactions, religion, sexual orientation, etc. However, these forms of discrimination are not equally tolerable. For...

Persistent link: https://www.econbiz.de/10005094272

Relational Contracts, the Cost of Enforcing Formal Contracts, and Capital Structure Choice - Theory and Evidence

Fahn, Matthias - 2017

This paper shows that the cost of enforcing contracts governing non-financial relationships between firms affects a firm's financing structure. We analyze the interaction between a firm's capital structure and the type of contracts it uses to deal with its suppliers. We first develop a...

Persistent link: https://www.econbiz.de/10012950295

Formal Contracts, Relational Contracts, and the Holdup Problem

Itō, Hideshi; Morita, Hodaka - 2008

nature of investment, writing a simple fixed-price contract can be valuable under repeated transactions: There is a range of … parameter values in which a higher investment can be implemented only if a formal price contract is written and combined with a … relational contract. We also show that there are cases in which not writing a formal contract but entirely relying on a …

Persistent link: https://www.econbiz.de/10014028957