Whistle-blowing is usually regarded as a way to identify abuse and wrongdoing on the part of governments and corporations. In this paper we show how, at a micro level, whistle-blowing can be used as a designer tool to prevent opportunistic behavior, that takes the form of collusion or blackmail,...

We find an economic rationale for the common sense answer to the question in our title - courts should not always enforce what the contracting parties write.We describe and analyze a contractual environment that allows a role for an active court. An active court can improve on the outcome that...