This paper analyzes bilateral contracting in an environment with contractual incompleteness and asymmetric information. One party (the seller) makes an unverifiable quality choice and the other party (the buyer) has private information about its valuation. A simple deterministic exit option contract, which allows the buyer to refuse trade, achieves the first–best in the benchmark cases where ei...

A Working Paper is the author's intellectual property. It is intended as a means to promote research to interested readers. Its content should not be copied or hosted on any server without written permission from publications. Outsourcing of equipment repair and restoration is commonly practiced by firms across many industries. The operational performance of the equipment is determined by joint...

let $k$ be a field of characteristic$p>0$, $k[[x]]$, the ring of formal power series over $ k$,$k((x))$, the quotient field of $ k[[x]]$, and $ k(x)$ the fieldof rational functions over $k$. we shall give somecharacterizations of an algebraic function $fin k((x))$ over $k$.let $l$ be a field of characteristic zero. the power series $finl[[x]]$ is called differentially algebraic, if it satisfies...

We analyze the impact of contract enforcement problems on the emergence of (involuntary) unemployment. In an experimental labor market where the trading parties can form long-term relationships, we compare a work environment where contracts are implicit in the sense that effort is observable, but not verifiable to a situation where contracts are “complete” and effort is enforced exogenously. In...

In the business world, contracts are used to regulate business interactions between trading parties. In this context, an electronic contracting systems can be used to monitor business–to–business interactions to ensure that they comply with the rights (permissions), obligations and prohibitions stipulated in contract clauses. Such an electronic contracting system will require an executable vers...

In the past decade, we have seen significant increase in the level of outsourcing in many industries. This increase in the level of outsourcing increases the importance of implementing effective contracts in supply chains. In this thesis, we study several issues in supply chain contracts. In the first part of the thesis, we study the impact of effort in a supply chain with multiple retailers. T...

This paper examines a model in which individuals contract with one another along the branches of a fixed network and then select verifiable productive actions with externally enforced transfers. Special cases of the model include most settings of contracting with externalities that have been studied in the literature. The model allows for a type of externality that the previous literature has n...

While expensive cryptographically verifiable computation aims at defeating malicious agents, many civil purposes of outsourced computation tolerate a weaker notion of security, i.e., " lazy-but-honest " contractors. Targeting this type of agents, we develop optimal contracts for outsourcing of computational tasks via appropriate use of rewards, punishments, auditing rate, and " redundancy ". Ou...

in the context of contract formation, an offer and acceptance may be expressed by means of data message. from legal point of view, a variety of fundamental issues must be addressed to insure that such contracts are legally valid and enforceable. this paper, with aim to investigate this issue, distinguishes between the agreement arise as a result of offer and acceptance and the agreement which s...