Parties often regulate their relationships through “continuing” contracts that are neither long-term nor short-term but usually roll over. We study the trade-off between long-term, short-term, and continuing contracts in a two period model where gains from trade exist in the first period,...

Parties often regulate their relationships through “continuing” contracts that are neither long‐term nor short‐term but usually roll over: a leading example is a standard employment contract. We argue that what distinguishes a continuing contract from a short‐term (or fixed‐term)...

Parties often regulate their relationships through "continuing" contracts that are neither long-term nor short-term but usually roll over. We study the trade-off between long-term, short-term, and continuing contracts in a two period model where gains from trade exist in the first period, and...