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Pre-Contractual Reliance

Author

Listed:
  • Bebchuk, L.
  • Ben-Shahar, O.

Abstract

During contarctual negotiations, but before entering a contarct, parties might make reliance expenditures. Such expenditures would increase the surplus should a contarct be made, but would wasted if not. This paper analyses parties' decisions to invest in pre-contractual reliance under alternative legal regime.

Suggested Citation

  • Bebchuk, L. & Ben-Shahar, O., 1996. "Pre-Contractual Reliance," Papers 31-96, Tel Aviv.
    • Handle: RePEc:fth:teavfo:31-96
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    Cited by:

    1. A. Mitchell Polinsky & Steven Shavell, 2005. "Economic Analysis of Law," Discussion Papers 05-005, Stanford Institute for Economic Policy Research.
    2. Jacobi, Osnat & Weiss, Avi, 2013. "Allocation of fault in contract law," International Review of Law and Economics, Elsevier, vol. 36(C), pages 1-11.
    3. Albert H. Choi & George Triantis, 2021. "Contract Design When Relationship-Specific Investment Produces Asymmetric Information," The Journal of Legal Studies, University of Chicago Press, vol. 50(2), pages 219-260.
    4. Robert C. Bird & Vivek Soundararajan, 2020. "The Role of Precontractual Signals in Creating Sustainable Global Supply Chains," Journal of Business Ethics, Springer, vol. 164(1), pages 81-94, June.
    5. Steven Shavell, 2003. "Economic Analysis of Contract Law," NBER Working Papers 9696, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    CONTRACTS; DECISION MAKING;

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law

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