Results 281 to 290 of about 356,985 (308)

Optimal risk in agricultural contracts

Agricultural Systems, 2003
It is a commonplace observation that risk-averse farmers ought to prefer less risk. In this paper, we provide three qualifications to this commonplace. First, we note that (properly defined) “less risk” need not imply “smaller variance.” Second, we note that when farmers produce under contract, there may be an important tension between risk and ...
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The Optimality of Ad Valorem Contracts

Management Science, 2019
We provide a new theory of ad valorem contracts (i.e., contracts that vary with the value of the transaction), which can explain why such contracts are widely used between vertically related parties (e.g., in franchising and licensing). Ad valorem contracts allow upstream firms (principals) to preserve their own incentives to make ongoing investments ...
Andrei Hagiu, Julian Wright
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Optimal Collateralized Contracts

SSRN Electronic Journal, 2017
We examine the role of collateral in a dynamic model of optimal credit contracts in which a borrower values both housing and nonhousing consumption. The borrower’s private information about his income is the only friction. An optimal contract is collateralized when in some state, some portion of the borrower’s net worth is forfeited to the lender.
Dan Cao, Roger Lagunoff
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Renegotiation and Optimality in Agency Contracts

The Review of Economic Studies, 1994
Summary: We analyze renegotiation in a hidden action principal-agent model. Contract renegotiation offers are made by the agent. A refinement is imposed on the principal's beliefs: if precisely one action is optimal with respect to both the principal's and the agent's contracts, the principal believes that action has been taken.
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Optimal equilibrium contracts in the infinite horizon with no commitment across periods

Theory and Decision, 2022
Subir K Chakrabarti, Jaesoo Kim
exaly  

Optimal Spot Trading Integrated with Quantity Flexibility Contracts

Production and Operations Management, 2020
Jianjun Xu, Mustafa Çagri Gurbuz, Youyi Feng   +2 more
exaly  

Optimal build-operate-transfer road contracts under information asymmetry and uncertainty

Transportation Research Part B: Methodological, 2021
Yafeng Yin, Qingxian An
exaly  

Optimally Incomplete Contracts

1998
One of the critical roles for the entrepreneur in successfully starting a new firm and introducing new products or services is to mobilize the necessary resources. These activities include hiring employees and lining up suppliers of intermediate goods and services. Both of these activities involve contracting with other parties.
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Quantity Flexibility Contracts: Optimal Decisions with Information Updates*

Decision Sciences, 2004
Suresh P Sethi, Houmin Yan, Hanqin Zhang   +2 more
exaly  

Optimal partnership contracts: Foundation and duality

International Journal of Economic Theory, 2005
Harrison Cheng
exaly