Relational Adaptation
نویسندگان
چکیده
Economic performance depends crucially on how parties adapt to changing circumstances. We therefore study how the organization of economic activity can facilitate such adaptation. Where spot transactions would produce inefficient adaptation, we ask how governance structures (allocations of control) can facilitate relational contracts that improve on spot adaptation. We show that the optimal governance structure for implementing a given relational contract minimizes the maximum aggregate reneging temptation created by that relational contract. We thus explore how formal governance structures support self-enforcing relationships—principally in contracts between firms, but also in “forbearance” within firms and relational contracting in “hybrid” governance structures.
منابع مشابه
Relational Adaptation in Contracts, Firms, and Other Governance Structures
Economic performance depends crucially on how parties adapt to changing circumstances. We therefore study how the organization of economic activity can facilitate such adaptation. We focus on settings where spot transactions would produce inefficient adaptation, so we ask whether alternative governance structures (allocations of control) facilitate relational contracts that improve on spot adap...
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تاریخ انتشار 2011