Economic contract theory tests models of mutualism

Economic contract theory tests models of mutualism.

Although mutualisms are common in all ecological communities and have played key roles in the diversification of life, our current understanding of the evolution of cooperation applies mostly to social behavior within a species. A central question is whether mutualisms persist because hosts have evolved costly punishment of cheaters. Here, we use the economic theory of employment contracts to f...

Economic game theory for mutualism and cooperation.

We review recent work at the interface of economic game theory and evolutionary biology that provides new insights into the evolution of partner choice, host sanctions, partner fidelity feedback and public goods. (1) The theory of games with asymmetrical information shows that the right incentives allow hosts to screen-out parasites and screen-in mutualists, explaining successful partner choice...

Contract theory in continuous - time models

This book provides a rigorous mathematical treatment of the principal-agent problem in its three main forms: • Risk sharing under full information. In this case, the principal and the agent share the same information. This case is also known as the individual rationality constraint . • Contracting under hidden action. In this case, the principal has less information than the agent. This case is...

Evolutionary Models of Mutualism

Contract Theory and Theories of Contract Regulation

This Essay considers the substantive and institutional aspects of an economic theory of contract regulation. It lists the various functions that analysts have assigned to contract regulation and briefly discusses the substantive wisdom and institutional feasibility of performing those functions. The essay tentatively concludes that the state should enforce contracts, supply vocabularies that ar...