controlling the contract price is preferable, as that policy can reduce the problems of holdup but still allow contracts to be …

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 …

the world are often describable, foreseeable, and yet are not mentioned in a contract. Asymmetric information theories …)negotiation in states outside E. We show that if parties agree about a reasonable division of surplus, an incomplete contract can be … strictly superior to a contingent contract. …

We argue that a contract provides a reference point for a trading relationship: more precisely, for parties' feelings … permitted by the contract. A party who is shortchanged shades on performance. A flexible contract allows parties to adjust their …

Economic models of contract typically assume that courts enforce obligations based on verifiable events (corresponding … optimal contract design given the available remedies used by the courts. This paper shows that American standard form …