When Court enforcement is excessively difficult or costly, agents are often able to create «endogenous enforcement mechanisms», that is, to design agreements so that each party finds it optimal to carry them out (self-enforcing implicit contracts), thanks to the threat of sanctions affecting...

Collective bargaining at company level has not been particularly widespread, especially at small firms and in the South. The Bank of Italy’s survey shows that performancerelated wage premia have been paid irregularly and have involved only small amounts. Nevertheless they have fostered a...