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The Multicontract Organization


  • Jean Tirole


This paper starts by discussing some nonstandard issues in organization theory: bou nded rationality; incomplete contracting; and collusive behavior, on which the rest of the paper focuses. It then contrasts the comprehens ive contracting and game theoretic approaches to collusion, and it li sts tentative conclusions and some unresolved issues.

Suggested Citation

  • Jean Tirole, 1988. "The Multicontract Organization," Canadian Journal of Economics, Canadian Economics Association, vol. 21(3), pages 459-466, August.
  • Handle: RePEc:cje:issued:v:21:y:1988:i:3:p:459-66

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    References listed on IDEAS

    1. Robin Boadway & Neil Bruce & Jack Mintz, 1984. "Taxation, Inflation, and the Effective Marginal Tax Rate on Capital in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 17(1), pages 62-79, February.
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    Cited by:

    1. Dur, Robert & Roelfsema, Hein, 2010. "Social exchange and common agency in organizations," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(1), pages 55-63, January.
    2. Breton, Albert, 1995. "Organizational hierarchies and bureaucracies: An integrative essay," European Journal of Political Economy, Elsevier, vol. 11(3), pages 411-440, September.
    3. Zou, L., 1989. "Ownership structure and efficiency : An incentive mechanism approach," Discussion Paper 1989-55, Tilburg University, Center for Economic Research.
    4. Riyanto, Yohanes E., 2000. "Delegation of authority, managerial initiatives, and the design of divisional structure," CCSO Working Papers 200011, University of Groningen, CCSO Centre for Economic Research.
    5. Zou, Liang, 1992. "Ownership structure and efficiency: An incentive mechanism approach," Journal of Comparative Economics, Elsevier, vol. 16(3), pages 399-431, September.
    6. Batabyal, Amitrajeet A., 1997. "Developing countries and environmental protection: the effects of budget balance and pollution ceiling constraints," Journal of Development Economics, Elsevier, vol. 54(2), pages 285-305, December.
    7. Amitrajeet Batabyal, 1999. "Developing Countries and Environmental Protection: Contract Design in Perfectly Correlated Environments," Open Economies Review, Springer, vol. 10(3), pages 305-323, July.
    8. Batabyal, Amitrajeet A., 1998. "On the irrelevance of collusion in perfectly correlated environments," International Review of Economics & Finance, Elsevier, vol. 7(4), pages 393-405.
    9. repec:dgr:rugccs:200011 is not listed on IDEAS
    10. Batabyal, Amitrajeet A., 1998. "Developing countries and international environmental agreements: The case of perfect correlation," International Review of Economics & Finance, Elsevier, vol. 7(1), pages 85-102.
    11. Chaserant, Camille, 2007. "Les fondements incomplets de l’incomplétude : Une revue critique de la théorie des contrats incomplets," L'Actualité Economique, Société Canadienne de Science Economique, vol. 83(2), pages 227-253, juin.
    12. Michael Dietrich, 2002. "The Contested Sovereignty of the Firm," Review of Political Economy, Taylor & Francis Journals, vol. 14(2), pages 193-209.

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