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The Economics of Contracts-Theories and Applications

To an economist, a contract is an agreement under which two parties make reciprocal commitments in terms of their behavior - a bilateral coordination arrangement. Of course, this formulation touches on the legal concept of the contract (a meeting of minds creating effects in law), but also transcends it. | Economics Contrails The Economics of Contracts Theories and Applications by Eric Brousseau and Jean-Michel Glachant eds Cambridge University Press 2002 584 pages ISBN 0521893135 This is a current synthesis of the economic analysis of contracts written by leading international scholars. The book examines theoretical developments diverse fields of applications methodologies used and policy implications at firm and state levels. The Economics of Contracts-Theories and Applications Eric Brousseau Jean-Michel Glachant CAMBRIDGE UNIVERSITY PRESS PUBLISHED BY THE PRESS SYNDICATE OF THE UNIVERSITY OF CAMBRIDGE The Pitt Building Trumpington Street Cambridge United Kingdom CAMBRIDGE UNIVERSITY PRESS The Edinburgh Building Cambridge CB2 2RU UK 40 West 20th Street New York NY 10011 -4211 USA 477 Williamstown Road Port Melbourne VIC 3207 Australia Ruiz de Alarcón 13 28014 Madrid Spain Dock House The Waterfront Cape Town 8001 South Africa http www.cambridge.org Copyright Cambridge University Press This book is in copyright. Subject to statutory exception and to the provisions of relevant collective licensing agreements no reproduction of any part may take place without the written permission of Cambridge University Press. First published 2002 Typeface Plantin 10 12 pt System LATEX2e TB A catalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication data The economics of contracts theories and applications edited by Eric Brousseau and Jean-Michel Glachant. p. cm. Includes revised and translated versions of chapters which appeared in a special issue of Revue d économie industrielle 2002 92 Includes bibliographical references and index. ISBN 0 521 81490 1 0-521-89313-5 pb. 1. Contracts-Economic aspects. I. Brousseau Eric. II. Glachant Jean-Michel. K840.E28 2002 338-dc21 2002019300 ISBN 0 521 81490 1 hardback ISBN 0 521 89313 5 paperback Contributors PHILIPPE AGHION is Professor of Economics at Harvard University His main fields