Recent reforms across Eastern European countries gave more flexibility and information for parties to engage in secured debt transactions, reducing court involvement. The menu of assets legally accepted as collateral was enlarged to include movable assets (e.g., machinery and equipment). Generalized difference-in-differences tests show that firms operating more movable assets borrowed more, inv...

Delivering real-time services (Internet telephony, video conferencing, and streaming media as well as business-critical data applications) across the Internet requires end-to-end quality of service (QoS) guarantees, which requires a hierarchy of contracts. These standardized contracts may be referred to as Service Level Agreements (SLAs). SLAs provide a mechanism for service providers and custo...

The 2007-2009 financial crisis and recession highlighted the role of counterparty risk in financial contracts, many once thought immune to such problems. However, counterparty risk can be significant in a wide variety of contracting situations and can impact capital structure decisions. Using commercial real estate leases as an example, this paper presents a new model that endogenizes the capit...

This paper explores how the opportunity to recontract affects investment and trade in contractual relationships when it is assumed that renegotiation is costly. In this world, recontracting retains much of the benefit that has been ascribed to it, including the realization of any surplus that is available ex post. Costly recontracting also mitigates the well-known drawback, that parties who exp...

We investigate the effect of sequential commitment in the decentralized newsvendor model with price-dependent demand. Sequential commitment allows the self-profit maximizing parties to commit to contract parameters (e.g., wholesale price, retail price, buyback price and order quantity) sequentially and alternately, and we investigate its effect on the equilibrium profits of the channel and its ...

Asymmetric awareness of the contracting parties regarding the uncertainty surrounding them is proposed as a reason for incompleteness in contractual forms. An insurance problem is studied between a risk neutral insurer, who has superior awareness regarding the nature of the uncertainty, and a risk averse insuree, who cannot foresee all the relevant contingencies. The insurer can mention in a co...

R cforms in the nation's healthcare system are raising the pressure on managed care plans to capitate payments to physicians and hospitals, said David N . Schopp at the seminar " U n d e r s t a n d i n g Capitation and Risk Sharing," held following the Catholic Health Assembly (pp. 33-59). Insurance reforms, Schopp explained, will prevent a plan from using experience rating—that is, raising pr...

. Business Process Models are typically used to express inter or intra – enterprise business activities/processes. Contractual obligations need to be fulfilled through execution of business processes on behalf of the contracting parties . To do so, business contract terms and conditions need to be semantically integrated to existing internal business process models. Contract obligation, perform...

Although electronic commerce (e-commerce) can be a source of competitive advantage, will e-commerce businesses in countries like China flourish when governments still take a “wait-and-see attitude” as to prompting, protecting, and regulating e-commerce? The paper employs transaction cost economics in analyzing the role of government in regulating electronic contracting. Due to the transaction c...

We study a contract design setting in which the contracting parties cannot commit not to renegotiate previous contract agreements. In particular, we characterize the outcome functions that are implementable for an uninformed principal and an informed agent if, having observed the agent’s contract choice, the principal can offer a new menu of contracts in its place. An outcome function can be im...