This paper extends the existing theory and empirical investigation of unitization contracts. It highlights the …-term contracts. We argue that only if the parties to a unitization contract have unit production shares that are the same as their … cost shares will the contract be incentive compatible. Using a data base of sixty unit operating agreements, we measure the …

This paper examines the sharing of risk under three different remedies for breach of contract. The risk considered …. By means of a numerical example, it is shown that use of the prevailing remedy for breach of contract -- the expectation …

commit to a contract. The main issue is how contracts are designed to deal with classification risk. We present a model that … captures the main features of this industry. The data is especially suited for a test of the theory since it includes … the theory. All types of contracts involve front-loading. This generates a partial lock-in of consumers. Contracts that …

. If when an employer and worker establish a relationship they cannot contract on the output and profits of the worker …'s prospective new firm, the employer counters by inducing the worker to sign a contract that prohibits him from competing or …

According to the contract law principle established in the famous nineteenth century English case of Hadley v …. Baxendale, and followed ever since in the common law world, liability for a breach of contract is limited to losses "arising …, at the time they made the contract, ..." Using a formal model, we attempt in this paper to analyze systematically the …

argument is the written contract and whose value is another contract, the interpreted contract, which is what actually governs …