Faculty of Economics and Business (M-building, room: M0.02). Title: "Benefits of Contractual Linkages". Doors open from 11.45, lunch will be served.
In this paper, I examine the question of whether decentralized, private contracting can emulate centralized, multilateral contracting. I show that success of the decentralized system requires the parties in different contractual relationships to establish at least implicit links between their contracts. I examine various ways in which these contract linkages may be formed, focusing on three main institutional settings that are defined on the basis of the set of feasible contracts: (i) general contracts on contracts, (ii) a separable form of contracting on contracts, and (iii) contracts on only productive actions.