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We develop a model of strategic contractual incompleteness that identifies conditions under which principals might omit even costlessly verifiable terms. We then use experiments to test comparative statics predictions of the model. While it is well known that verifiability imperfections can...
Persistent link: https://www.econbiz.de/10013031190
theory of contract. Finally, the empirical literature on employment and labor law is reviewed. I conclude that many aspects … of employment law are consistent with the economic theory of contract - namely, that contracts are written and enforced …
Persistent link: https://www.econbiz.de/10013132281
In this paper, we discuss recent evidence from economic experiments that study the impact of social preferences on workplace behavior. We focus on situations in which a single employer interacts with multiple employees. Traditionally, equity and efficiency have been seen as opposing aims in such...
Persistent link: https://www.econbiz.de/10013124485
We propose a model to evaluate the U.K.'s zero-hours contract (ZHC) a contract that exempts employers from the …
Persistent link: https://www.econbiz.de/10014083937
Contract law and the economics of contract have, for the most part, developed independently of each other. In this … essay, we briefly review the notion of a contract from the perspective of lawyer, and then use this framework to organize … the economics literature on contract. The title, Contracts between Legal Persons, limits the review to that part of …
Persistent link: https://www.econbiz.de/10013135191
Job displacement insurance typically includes both unemployment benefits and lump-sum severance pay, and each has provoked policy concerns. Unemployment insurance concerns have centered on distorted job search/offer acceptance decisions by the worker, severance-induced firing cost concerns on...
Persistent link: https://www.econbiz.de/10013067317
We develop a new approach to quantify how patients respond to dynamic incentives in health insurance contracts with a deductible. Our approach exploits two sources of variation in a differences-in-regression-discontinuities design: deductible contracts reset at the beginning of the year, and...
Persistent link: https://www.econbiz.de/10012837905
We present a wage-hours contract designed to minimize costly job turnover given investments in on the job training …
Persistent link: https://www.econbiz.de/10013076817
impurity is very low as long as one party's investment is more important than the other party's. If the parties' investments …
Persistent link: https://www.econbiz.de/10012780020
of the minimum wage on human capital investment rates and no overall effects on fixed capital investment rates. When …
Persistent link: https://www.econbiz.de/10012979850