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Several recent papers argue that contracts provide reference points that affect ex post behavior. We test this hypothesis in a canonical buyer-seller relationship with renegotiation. Our paper provides causal experimental evidence that an initial contract has a highly significant and...
Persistent link: https://www.econbiz.de/10009656180
-sharing, screening opportunities, and competition are important driving forces behind these new forms of work organization. We document … competition substantially fosters the trust strategy, reduces market segmentation, and leads to large welfare gains for both …
Persistent link: https://www.econbiz.de/10003951888