Workers will not pay for general on-the-job training if contracts are not enforceable. Firms may if there are mobility …

Labour contracts which establish performance-related pay are afflicted with the firm's moral hazard problem because of … that such contracts could be enforced through a mechanism of the firm's reputation or thanks to an excess of demand in the … mechanism for performance-related pay contracts based on turnover costs, borne by firms arising from the process of hiring …

We present a model in which mutual gains from trade motivate the use of termination provisions in merger contracts. The … inclusion of a termination provision in the contract permits Pareto efficient merger contracts and results in strictly higher … payoffs for both bidder and target compared to contracts without termination fees. The fees are revealed not to be primarily a …

. In each theory we analyze how a reduction in the cost of divorce affects the propensity to divorce for couples at any … why individuals enter marriage contracts is that they serve as a commitment device …

rigid, non discretionary contracts. Delegation grants some flexibility in the choice of the action by the agent, but also … again implies that the higher the degree of imprecision aversion the less profitable flexible contracts versus rigid ones …