operation contracts Reiner Hähnle, TU Darmstadt Proof reuse in formal software verification is crucial in presence of constant evolutionary changes to the verification target. Contract-based verification makes it possible to verify large programs, because each method in a program can be verified against its contract separately. A small change to some contract, however, invalidates all proofs th...

Architecture description languages define component interfaces with sequential contracts, which allow for static analysis of method call sequences in component or service interactions. However, component and service platforms like OSGi for Java do not provide mechanisms for the specification or enforcement of such sequential contracts. Thus the contracts are only defined in the documentation wh...

We show experimentally that fairness concerns may have a decisive impact on both the actual and the optimal choice of contracts in a moral hazard context. Explicit incentive contracts that are optimal according to self-interest theory become inferior when some agents value fairness. Conversely, implicit bonus contracts that are doomed to fail among purely selfish actors provide powerful incenti...

Grid computing platforms require automated and distributed resource allocation with controllable quality-of-service (QoS). Market-based allocation provides these features using the complementary abstractions of proportional shares and reservations. This paper analyzes a hybrid resource allocation system using both proportional shares and reservations. We also examine the use of price prediction...

The real exchange rate is very volatile relative to major macroeconomic aggregates and its correlation with the ratio of domestic over foreign consumption is negative (Backus-Smith puzzle). These two observations constitute a puzzle to standard international macroeconomic theory. This paper develops a two country model with complete asset markets and limited enforcement for international financ...

Interface contract enforcement is intended to help scientists gain confidence in software built from third-party components. Unfamiliar components present increased risk of incorrect or unanticipated usage patterns and unexpected component behavior. Executable interface contracts can address these issues but may incur unacceptable overhead. Research into techniques for performance-driven contra...

This paper presents an approach for the specification and implementation of business contracts needed for Business-to-Business (B2B) services. We first examine typical elements of business contracts and their usage. This analysis sets a foundation for 1) modeling contracts and 2) developing a role-based architecture that supports typical operations in the contract’s lifetime. We explore how con...

Standard incentive theory models provide a rich framework for studying informational problems but assume that contracts can be perfectly enforced. This paper studies the design of self-enforced relational contracts. I show that optimal contracts often can take a simple stationary form, but that self-enforcement restricts promised compensation and affects incentive provision. With hidden informa...