Relational Contracts in Competitive Labour Markets
نویسندگان
چکیده
منابع مشابه
Relational Contracts in Competitive Labor Markets∗
This paper characterizes the distribution of jobs in a relational contracting model where both employed and unemployed workers compete for jobs. In equilibrium, identical firms offer a continuous distribution of contracts, with some firms offering high-wage, high-productivity contracts and others offering low-wage, low-productivity contracts. An increase in on-the-job-search affects equilibrium...
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Empirical studies of commercial relationships between firms reveal that (i) suppliers encounter situations in which they can gain in the short run by acting opportunistically—for example, delivering a lower quality than promised after being paid; and (ii) good conduct is sustained not exclusively by formal contracts but through informal relationships and the expectation of future business. In s...
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The insight of Arrow [4] and Debreu [7] that uncertainty is easily incorporated into general equilibrium models is double-edged. It is true that one need only index commodities by the state of nature, and classical results on the existence and optimality of competitive equilibria can be made to apply. Yet it seems there are few contingent dealings among agents relative to those suggested by the...
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How should a firm set policies– public decision plans that determine the role of its employees, divisions, and suppliers– to strengthen its relationships? We explore whether and how a principal might bias the decisions she makes to foster relational contracts with her agents. To this end, we examine a flexible dynamic game between a principal and several agents with unrestricted vertical transf...
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This paper shows that the efficiency of relational contracting can be increased by reducing the public information through a novel intertemporalgarbling process of signals. A distinctive and essential feature of our intertemporalgarbling process is that past outputs have enduring effects on future signals. This process reduces the principal’s maximal reneging temptation by linking together the ...
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ژورنال
عنوان ژورنال: The Review of Economic Studies
سال: 2014
ISSN: 1467-937X,0034-6527
DOI: 10.1093/restud/rdu036