Contracts

Relationships on the Rocks: Contract Evolution in a Market for Ice

Firms use relational contracts to support repeated trade. Do these informal agreements evolve in response to market conditions? In a market for ice, firms reestablish relationships on new terms when a prior agreement breaks down.

Journal Article
1 Jan 2021

Misallocation in the Market for Inputs: Enforcement and the Organization of Production

The strength of contract enforcement determines how firms source inputs and organize production.

Journal Article
1 Nov 2020

Monitoring in Target Contracts: Theory and Experiment in Kenyan Public Transit

Kelley, Lane and Schönholzer (2020) develop a relational contracting model to study the role of monitoring in firms and evaluate the model experimentally in the field.

Working Paper
23 Oct 2020

Crony Capitalism, Collective Action, and ICT: Evidence from Kenyan Contract Farming

The shift from subsistence to commercial economies creates surplus, but often induces conflict over it. Under extractive institutions and weak contract enforcement, crony capitalism may emerge and limit the benefits of modernization.

Working Paper
15 Oct 2019

The Political Determinants of Economic Exchange: Evidence from a Business Experiment in Senegal

Economic growth requires confidence in the state's ability to enforce secure exchange. But when states selectively enforce rule of law, political considerations can moderate the trust that buyers have in sellers.

Working Paper
1 Apr 2019

The Relationship Between Private Ordering and the State in Nigeria

In countries with weakly institutionalized legal environments, private contract enforcement mechanisms arise to facilitate trade. This project focuses on cheating in business and the interaction between private contract enforcement and public legal institutions. 

Research Project
1 May 2012