In this paper, we analyze the contracting issues that arise in collaborative services, such as consulting, financial planning, and IT outsourcing. In particular, we investigate how the choice of contract type, among fixed-fee, time-and-materials, and performance-based contracts, is driven by the...

In many contexts such as product design and development, advertising, or scouting for technical solutions, clients seek the expertise of external providers to generate innovative solutions for their business problems. Since innovation projects are beset with uncertainty, they often require...