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Contract Law, Social Norms and Inter-firm Cooperation

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  • Arrighetti, Alessandro
  • Bachmann, Reinhard
  • Deakin, Simon

Abstract

This paper analyzes the regulation of interfirm contracting in Germany, Britian, and Italy. Contrary to earlier empirical studies and to models drawn from transaction-cost theory, the authors find that contract law may play an important role in underpinning long-term, cooperative relationships and in fostering trust. The impact of contract law depends on the relationship between the legal system and other forms of institutional regulation, including trade associations and standard-setting bodies. Copyright 1997 by Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Cambridge Journal of Economics.

Volume (Year): 21 (1997)
Issue (Month): 2 (March)
Pages: 171-95

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Handle: RePEc:oup:cambje:v:21:y:1997:i:2:p:171-95

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Cited by:
  1. Ees, Hans van & Bachmann, Reinhard, 2003. "Transition economics and trust building : a network perspective on E.U. enlargement," Research Report 03G06, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
  2. Simon Johnson & John McMillan, 2002. "Courts and Relational Contracts," Journal of Law, Economics and Organization, Oxford University Press, vol. 18(1), pages 221-277, April.
  3. Martino, Gaetano, 2010. "Trust, contracting, and adaptation in agri-food hybrid structure," MPRA Paper 37617, University Library of Munich, Germany.
  4. T Quince, 2001. "Entrepreneurial Collaboration: Terms of Endearment or Rules of Engagement?," ESRC Centre for Business Research - Working Papers wp207, ESRC Centre for Business Research.
  5. Deakin, S., 2011. "Legal Evolution: Integrating Economic and Systemic Approaches," ESRC Centre for Business Research - Working Papers wp424, ESRC Centre for Business Research.
  6. Christopher Cramer, 2000. "Privatisation and Adjustment in Mozambique: a 'Hospital Pass'?," Working Papers 111, Department of Economics, SOAS, University of London, UK.
  7. Mike Danson & Geoff Whittam, 1998. "Clustering, innovations and trust: the essentials of a clusters strategy for Scotland," ERSA conference papers ersa98p387, European Regional Science Association.
  8. Bachmann, Reinhard, 2001. "The role of trust and power in the institutional regulation of territorial business systems," Research Report 01G30, University of Groningen, Research Institute SOM (Systems, Organisations and Management).

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