Contract Law, Social Norms and Inter-firm Cooperation
AbstractThis 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 InfoArticle provided by Oxford University Press in its journal Cambridge Journal of Economics.
Volume (Year): 21 (1997)
Issue (Month): 2 (March)
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- Simon Johnson & John McMillan, 2002.
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