re-negotiated. Foreseeing this, the parties to the contract will write one that is renegotiation-proof. Under such a … contract, nominal shocks affect real consumption. Since the argument should apply in many situations, it will have …

Two parties sign a contract but before they fully perform they modify the contract. Should courts enforce the modified … to write a contract that is robust to hold-up or that makes the facts relevant to modification verifiable. But … contract technology, e.g., the use of liquidated damages, to ensure commitment are disfavored by courts and subject to …

In this paper I explore optimal employment contract design in a random search framework, where workers search on and …

protected by contract. The recognition that such contracts are often incomplete has yielded major insights into the organization …

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 …

gains from trade exist in the first period, and may or may not exist in the second period. A long-term contract that … second period. A short-term contract is disadvantageous since a new contract must be negotiated if gains from trade exist in … the second period. A continuing contract can be better. In a continuing contract there is no obligation to trade in the …

efficiency is not attainable. We show that contracts involving mutual control might sometimes be superior to the best contract …