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Choosing and not choosing with and without communication: Experimental results on contract design and selection

AuthorsCharness, Gary; Ellman, Matthew
Issue DateMar-2016
PublisherMohr Siebeck
CitationJournal of Institutional and Theoretical Economics 172(1): 142-157 (2016)
AbstractThis paper studies selection and procedural effects in experimental contracting when sellers choose unenforceable trade quality after a possible cost shock. Br and ts, Charness, and Ellman (2016) investigate how communication affects behavior and outcomes in contractswith rigid prices, relative to contractswhere buyers can raise prices after observing the shock. An important remaining question is how behavior is affected by whether contract type is endogenous or experimenterimposed. Different sorts of buyersmay select contract types differently and sellers may respond differently when contract type is endogenous. Surprisingly, we find only modest effects. We draw lessons for experimental design.
Publisher version (URL)http://dx.doi.org/10.1628/093245616X14500948554153
Identifiersdoi: 10.1628/093245616X14500948554153
issn: 0932-4569
Appears in Collections:(IAE) Artículos
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