Article
Management
Vitali Gretschko, Martin Pollrich
Summary: The study shows that in publicly observable situations, buyers can achieve the same surplus regardless of whether contracts are complete or incomplete. Additionally, supplier switching is infrequent in procurement practice, making incomplete contracting less of a problem in many procurement projects.
MANAGEMENT SCIENCE
(2022)
Article
Economics
Junqing Li, Ersen Miao, Jianbo Zhang
Summary: This study provides a framework for analyzing the interactions among legal environments, incomplete contracts, and specialized investments. It suggests that improving legal environments can promote specialization, leading to an increase in labor productivity. This conclusion holds true not only at the micro (firm) level but also at the macro level of the economy.
CHINA ECONOMIC REVIEW
(2021)
Article
Management
Matthias Fahn
Summary: This paper analyzes a dynamic relational contract for employees with reciprocal preferences. It develops a model of a long-term employment relationship, which suggests that generous upfront wages activate the norm of reciprocity and play a more important role for employees nearing retirement. In earlier stages, direct incentives that promise a bonus in exchange for effort are more effective. Therefore, direct and reciprocity-based incentives should be used in combination, and a more competitive labor market may increase the utilization of reciprocity-based incentives.
MANAGEMENT SCIENCE
(2023)
Article
Law
Massimiliano Vatiero
Summary: This paper challenges the claim that smart contracts have lower transaction costs than traditional contracts enforced by legal mechanisms. The author argues that due to the need for adaptation and the consensus mechanism, smart contracts may actually have higher transaction costs. The paper proposes institutional measures to reduce these costs.
COMPUTER LAW & SECURITY REVIEW
(2022)
Article
Economics
Vicente Ramirez, Patricia Galilea, Joaquin Poblete, Hugo E. Silva
Summary: Providing the right incentives to bus drivers is a global challenge. Research shows that high-powered incentives can lead to safety hazards and poor service quality. However, team-based incentives can effectively motivate drivers without undesirable operational decisions, solving conflicts and improving service quality.
TRANSPORTATION RESEARCH PART A-POLICY AND PRACTICE
(2022)
Article
Business, Finance
Yoonha Kim
Summary: This paper examines the IPO underpricing phenomenon through the lens of incomplete contracts, highlighting the efficiency differences between Firm Commitment Offering and Best Efforts Offering. The allocation of bargaining power and default options in the renegotiation process are identified as key features that can be mapped to the contracts. The general applicability of contract theories to study IPO underpricing is demonstrated.
FINANCE RESEARCH LETTERS
(2021)
Article
Business
Stephen K. Kim, Amrit Tiwana
Summary: The role of franchising contracts in the adaptation of franchise chains has not been given sufficient attention in previous studies. This research conceptualizes franchising contracts as a collection of routines and explores the influence of contractual incompleteness on chainwide adaptation. By analyzing data from 281 US franchise chains, the study discovers that contractual incompleteness has a positive impact on chainwide adaptation, leading to revenue growth that surpasses rival chains.
JOURNAL OF BUSINESS RESEARCH
(2022)
Article
Engineering, Industrial
Tone Njolstad Slotsvik, Kenneth Arne Pettersen Gould, Lillian Katarina Stene
Summary: The interconnectivity of critical services, resulting from globalization, liberalization, and deregulation, can be seen in various forms, including procurement arrangements. This paper examines the impact of governance solutions on organizational reliability in the context of air ambulance service procurements in Norway.
Article
Economics
Jun Feng, Chun-Yu Ho, Xiangdong Qin
Summary: The ex-ante incomplete contract serves as a reference point for trading parties and influences their ex-post performances. This experimental investigation reveals that the external market price has an impact on parties' feelings of entitlement in both rigid and flexible contracts.
JOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION
(2022)
Article
Psychology, Clinical
Karigan P. Capps, John A. Updegraff, Jeremy L. Foust, Abigail G. O'Brien, Jennifer M. Taber
Summary: The aim of this study was to test the effectiveness of different messages in promoting hand sanitizer use among young adults. The results showed that dispensers with signs had 35% greater usage compared to no signage, with the static descriptive norms sign associated with the highest usage. The strongest predictor of sanitizer use was the level of COVID-19 risk in the residence halls.
Article
Management
Olga Kuzmina
Summary: Research shows that flexible employment contracts promote debt financing, reduce operating leverage and fixed costs, and increase financial leverage. This mechanism can be effectively utilized in a unique institutional environment to improve firm performance.
MANAGEMENT SCIENCE
(2023)
Article
Economics
Lawrence R. De Geest, David C. Kingsley
Summary: The study shows that in a public goods game with private information about endowments, groups tend to adopt a norm of contributing based on the lowest endowment when they cannot observe others' endowments, balancing the benefits of cooperation with the risks of punishment. Enforcement strategies prevent cooperation from unraveling when high types mix with low types, but also allow high types to hide behind the lower endowment. Norms can attenuate but not eliminate non-cooperative behavior in settings with incomplete information.
JOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION
(2021)
Article
Engineering, Industrial
Shouting Zhao, Juliang Zhang, T. C. E. Cheng
Summary: In this study, we investigate the coordination problem in supply chains. We find that production cost uncertainty exacerbates the incentive conflict in the supply chain, but centralized decision-making may increase expected profits. By designing an incomplete contract that allows for renegotiation after production cost realization, we are able to achieve the best outcome. We also explore the impact of contract incompleteness, renegotiation freedom, and residual control rights on supply chain performance, and demonstrate that our proposed incomplete contract can effectively avoid hold-up problems.
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH
(2022)
Article
Education & Educational Research
Ryan Naylor, Fiona L. Bird, Nicole E. Butler
Summary: Although academic expectations of students and staff aligned in most areas, students have broader conceptions of success at university and prioritize personal relationships with staff and teaching quality more than staff. Academics have stronger injunctive norms about prioritization of study and identifying as a student. These differences may lead to tension between the two groups, particularly in areas of individual values.
Article
Multidisciplinary Sciences
Gabby Salazar, Joao Neves, Vasco Alves, Bruno Silva, Jean-Christophe Giger, Diogo Verissimo
Summary: High-income countries, though home to only 16% of the global population, produce a significant amount of waste, much of which ends up in landfills. Environmental messaging should focus on reducing consumption, particularly of non-essential comfort goods, by using social norms to influence behavior. A study conducted at a marine park in Portugal found that a positive injunctive norm message significantly reduced paper straw use, demonstrating the potential impact of normative messaging in waste reduction efforts.
