In economics, politics and society, examples abound where agents can enter partial cooperation schemes, i.e., they can collude with a subset of agents. Several contributions devoted to specific settings have claimed that such partial cooperation actually worsens welfare compared to the...

This paper proposes an ex ante evaluation of the effects of new labor contracts such as the ""Contrat Nouvelle Embauche"" (CNE) introduced in France in 2005. The lessons we draw are of sufficiently general interest to be applicable to other countries or reforms of employment protection laws....