What do contracts do to facilitate relationships?

نویسندگان

چکیده

Abstract I demonstrate that transacting parties may expend resources on ex ante contracting, which not be legally enforceable, to help build and maintain their long-term relationships. first introduce three legal concepts, namely scaffolding , managerial provisions formal relational contracts highlight the recent trend towards more detailed contracts. These concepts indicate role of is improve judicial contract enforcement, but enhance clarity alignment interests reduce renegotiation costs, ultimately support parties’ then proceed present analyze a simple reduced-form model, demonstrates efforts for contracting are necessarily monotonic with level interests. Furthermore, discuss practices in Japan attempt provide an explanation lack change observed these practices.

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ژورنال

عنوان ژورنال: The Japanese Economic Review

سال: 2023

ISSN: ['1352-4739', '1468-5876']

DOI: https://doi.org/10.1007/s42973-023-00132-7