SFB 303 Discussion Paper No. A-452

Author: Schnitzer, Monika

Title: The Interaction of Explicit and Implicit Contracts

Abstract: We analyze explicit and implicit contracts in a repeated principal-agent model with observable but only partially contractible actions of the agent. It is shown that the set of implementable actions may increase or decrease if additional actions become contractible.

Keywords: Implicit contracts, repeated games.

JEL-Classification-Number: L14, C72, J33.

Creation-Date: First version: July 1994
URL: ../1994/a/bonnsfa452.pdf

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