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Trust between parties should drive the negotiation and design of contract: if parties did not trust each others … over time, we find that lower trust increases contract completeness. Not only contract complexity but also the verifiable …
Persistent link: https://www.econbiz.de/10012318377
Trust between parties should drive contract design: if parties were suspicious about each others' reaction to unplanned … across space and over time, we find that lower trust increases contract completeness. Not only the complexity but also the …-analysis-based measures of contract completeness and do not arise in falsification tests. At the clause level, we find that non …
Persistent link: https://www.econbiz.de/10013279419
I analyze a simple model of hold-up with asymmetric information at the contracting stage. I show that contractual signalling and efficiency of investment can conflict if only quantity is contractible. This is because contracted quantity encourages investment in the relationship but also signals...
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We develop a small open economy DSGE model to study the macro welfare effects of flexible labor contracts for an economy in a currency union. The framework exhibits two sectors: a fixed sector and a flex sector. The fixed sector offers contracts that exhibit rigidities in working-hours and wages...
Persistent link: https://www.econbiz.de/10013322479
We study a dynamic contracting problem in which the principal can allocate his limited capacity between seeking evidence that confirms or that contradicts the agent's effort, as the basis for reward or punishment. Such flexibility calls for jointly designed monitoring and compensation schemes...
Persistent link: https://www.econbiz.de/10012846446
's type. We find that the form of the optimal contract depends on the job characteristics and the distribution of employees …
Persistent link: https://www.econbiz.de/10013006141