Relational Adaptation

نویسندگان

  • George Baker
  • Robert Gibbons
  • Kevin J. Murphy
  • Sylvain Chassang
  • Anton Kolotilin
  • Hongyi Li
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.

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تاریخ انتشار 2011