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Bilateral Contracts

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  • Green, Jerry
  • Honkapohja, Seppo

Abstract

A mathematical characterization of self-enforcing bilateral contracts is given. Contracts where both parties exercise some control over the quantity traded can sometimes be superior to contracts that rest control entirely with one side. Some qualitative characteristics of these contracts are given.

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File URL: http://dash.harvard.edu/bitstream/handle/1/3204671/green_bilateral.pdf
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Bibliographic Info

Paper provided by Harvard University Department of Economics in its series Scholarly Articles with number 3204671.

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Date of creation: 1983
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Publication status: Published in Journal of Mathematical Economics
Handle: RePEc:hrv:faseco:3204671

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References

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  1. Laffont, Jean-Jacques & Maskin, Eric, 1980. "A Differential Approach to Dominant Strategy Mechanisms," Econometrica, Econometric Society, Econometric Society, vol. 48(6), pages 1507-20, September.
  2. Spence, Michael, 1977. "Nonlinear prices and welfare," Journal of Public Economics, Elsevier, Elsevier, vol. 8(1), pages 1-18, August.
  3. M. L. Weitzman, 1973. "Prices vs. Quantities," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 106, Massachusetts Institute of Technology (MIT), Department of Economics.
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Cited by:
  1. Russell Cooper, 1983. "Worker Asymmetric Information and Involuntary Unemployment," Cowles Foundation Discussion Papers, Cowles Foundation for Research in Economics, Yale University 671R, Cowles Foundation for Research in Economics, Yale University, revised Apr 1984.
  2. Edward P. Lazear, 1982. "Severance Pay, Pensions, and Efficient Mobility," NBER Working Papers 0854, National Bureau of Economic Research, Inc.

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