We analyze explicit and implicit contracts in a repeated principal-agent model with observable but only partially contractible actions of the agent. It is shown that the set of implementable actions may increase or decrease if additional actions become contractible.

This paper studies the strategic interaction between a

In the aftermath of the international debt crisis of the 1980s reciprocal trade arrangements experienced a resurgence. This paper examines how countertrade can help highly indebted countries to finance imports if they are not able to use standard credit arrangements. It compares the credit...

It is widely believed that the English auction is solved after the dominated strategies are eliminated. This opinion is formally confirmed only for one "ascending clock" auction and can not be generalized for most other English auctions. In this paper I show that the formal argument which is...

For the last 40 years the market for medical interns has been cleared with the help of a central matching procedure, the NRMP. This mechanism is applied after the wages are determined. So it is natural to ask how such a rationing scheme affects the equilibrium wages in this market. I present a...

Tying contracts are well-known for their anti-competitive potential. This paper questions their negative image by showing that tying contracts can be necessary to implement price signals which overcome problems of asymmetric information in the introductory phase of a new durable product. The...

In this paper we compare the two standard forms of international investments in developing countries, debt and foreign direct investment, form a finance perspective. It is shown that the sovereign risks associated with debt finance are generally less severe than the ones which come with FDI. FDI...