Contracting with Opportunistic Partners: Theory and Application to Technology Development and Innovation

Published Online:https://doi.org/10.1287/mnsc.2017.2967

References

  • Aghion P, Bolton P (1992) An incomplete contracts approach to financial contracting. Rev. Econom. Stud. 59(3):473–494.CrossrefGoogle Scholar
  • Aghion P, Dewatripont M, Rey P (1994) Renegotiation design with unverifiable information. Econometrica 62(2):257–282.CrossrefGoogle Scholar
  • Argyres N, Bercovitz J, Mayer K (2007) Complementarity and evolution of contractual provisions: An empirical study of IT services contracts. Organ. Sci. 18(1):3–19.LinkGoogle Scholar
  • Arruñada B, Garicano L, Vazquez L (2001) Contractual allocation of decision rights and incentives: The case of automobile distribution. J. Law, Econom., Organ. 17(1):257–284.CrossrefGoogle Scholar
  • Arya A, Mittendorf B, Sappington DEM (2008) The make-or-buy decision in the presence of a rival: Strategic outsourcing to a common supplier. Management Sci. 54(10):1747–1758.LinkGoogle Scholar
  • Arya A, Mittendorf B, Yoon D-H (2014) Revising the make-or-buy decision: Conveying information by outsourcing to rivals. Accounting Rev. 89(1):61–78.CrossrefGoogle Scholar
  • Arya A, Demski J, Glover J, Liang P (2009) Quasi-robust multiagent contracts. Management Sci. 55(5):752–762.LinkGoogle Scholar
  • Baiman S, Rajan MV (2002) Incentive issues in inter-firm relationships. Accounting Organ. Soc. 27(3):213–238.CrossrefGoogle Scholar
  • Bajari P, Houghton S, Tadelis S (2014) Bidding for incomplete contracts: An empirical analysis of adaptation costs. Amer. Econom. Rev. 104(4):1288–1319.CrossrefGoogle Scholar
  • Baldenius T (2006) Ownership, incentives, and the hold-up problem. RAND J. Econom. 37(2):276–299.CrossrefGoogle Scholar
  • Bester H, Strausz R (2001) Contracting with imperfect commitment and the revelation principle: The single agent case. Econometrica 69(4):1077–1098.CrossrefGoogle Scholar
  • Bolton P, Whinston MD (1993) Incomplete contracts, vertical integration, and supply assurance. Rev. Econom. Stud. 60(1):121–148.CrossrefGoogle Scholar
  • Casadesus-Masanell R, Spulber D (2000) The fable of Fisher Body. J. Law Econom. 43(1):67–104.CrossrefGoogle Scholar
  • Che Y-K, Hausch DB (1999) Cooperative investments and the value of contracting. Amer. Econom. Rev. 89(1):125–147.CrossrefGoogle Scholar
  • Christensen H, Nikolaev V, Wittenberg-Moerman R (2016) Accounting information in financial contracting: The incomplete contract theory perspective. J. Accounting Res. 54(2):397–435.CrossrefGoogle Scholar
  • Demski J, Frimor H (1999) Performance measure garbling under renegotiation in multi-period agencies. J. Accounting Res. 37(Supplement):187–214.CrossrefGoogle Scholar
  • Demski J, Frimor H, Sappington D (2004) Efficient manipulation in a repeated setting. J. Accounting Res. 42(1):31–49.CrossrefGoogle Scholar
  • Dewatripont M (1989) Renegotiation and information revelation over time: The case of optimal labor contracts. Quart. J. Econom. 104(3):589–619.CrossrefGoogle Scholar
  • Dnes A (1996) The economic analysis of franchise contracts. J. Institutional Theoret. Econom. 152(2):297–324.Google Scholar
  • Edlin AS, Reichelstein S (1996) Holdups, standard breach remedies, and optimal investment. Amer. Econom. Rev. 86(3):478–501.Google Scholar
  • Ellman M (2006) The optimal length of contracts with applications to outsourcing. Economics Working Papers 965, Department of Economics and Business, Universitat Pompeu Fabra, Barcelona, Spain.Google Scholar
  • Feltham GA, Xie J (1994) Performance measure congruity and diversity in multi-task principal-agent relations. Accounting Rev. 69(3):429–453.Google Scholar
  • Grossman SJ, Hart OD (1986) The costs and benefits of ownership: A theory of vertical and lateral integration. J. Political Econom. 94(4):691–719.CrossrefGoogle Scholar
  • Hadfield G (1990) Problematic relations: Franchising and the law of incomplete contracts. Stanford Law Rev. 42(4):927–992.CrossrefGoogle Scholar
  • Hart OD, Moore J (1988) Incomplete contracts and renegotiation. Econometrica 56(4):755–785.CrossrefGoogle Scholar
  • Hart OD, Moore J (1999) Foundations of incomplete contracts. Rev. Econom. Stud. 66(1):115–138.CrossrefGoogle Scholar
  • Hart OD, Shleifer A, Vishny R (1997) The proper scope of government: Theory and an application to prisons. Quart. J. Econom. 112(4):1126–1161.CrossrefGoogle Scholar
  • Healy PM (1985) The effect of bonus schemes on accounting decisions. J. Accounting Econom. 7(1–3):85–107.CrossrefGoogle Scholar
  • Holmstrom B, Milgrom P (1991) Multi-task principal-agent analyses: Incentive contracts, asset ownership and job design. J. Law, Econom., Organ. 7(Special issue):24–52.CrossrefGoogle Scholar
  • John G (1984) An empirical investigation of some antecedents of opportunism in a marketing channel. J. Marketing Res. 21(3):278–289.CrossrefGoogle Scholar
  • Klein B (1992) Contracts and incentives: The role of contract terms in assuring performance. Werin L, Stahl I, eds. Contract Economics (Blackwell Publishers, Oxford, UK), 149–172.Google Scholar
  • Martínez-Jerez FA (2007) Understanding customer profitability at Charles Schwab. HBS Case Study 9-106-002, Harvard Business School, Boston.Google Scholar
  • Martínez-Jerez FA (2014) Rewriting the playbook for corporate partnerships. Sloan Management Rev. 55(2):63–70.Google Scholar
  • Martínez-Jerez FA, Narayanan VG (2007) Strategic outsourcing at Bharti Airtel Limited. HBS Case Study 9-107-003, Harvard Business School, Boston.Google Scholar
  • Martínez-Jerez FA, Kaplan RS, Miller K (2009) Infosys’ relationship scorecard: Measuring transformational partnerships. HBS Case Study 9-109-006, Harvard Business School, Boston.Google Scholar
  • Maskin E, Moore J (1999) Implementation and renegotiation. Rev. Econom. Stud. 66(1):39–56.CrossrefGoogle Scholar
  • Maskin E, Tirole J (1999) Unforeseen contingencies and incomplete contracts. Rev. Econom. Stud. 66(1):83–114.CrossrefGoogle Scholar
  • Mayer KL, Argyres NS (2004) Learning to contract: Evidence from the personal computer industry. Organ. Sci. 15(4):394–410.LinkGoogle Scholar
  • Moore J, Repullo R (1988) Subgame perfect implementation. Econometrica 56(5):1191–1220.CrossrefGoogle Scholar
  • Oyer P (1998) The fiscal year ends and nonlinear incentive contracts: The effect on business seasonality. Quart. J. Econom. 113(1):149–185.CrossrefGoogle Scholar
  • Reiche S (2006) Ambivalent investment and the hold-up problem. J. Eur. Econom. Assoc. 4(6):1148–1164.CrossrefGoogle Scholar
  • Ryall MD, Sampson RC (2009) Formal contracts in the presence of relational enforcement mechanisms: Evidence from technology development projects. Management Sci. 55(6):906–925.LinkGoogle Scholar
  • Schmitz P (2006) Information gathering, transaction costs, and the property rights approach. Amer. Econom. Rev. 96(1):442–434.Google Scholar
  • Segal I (1999) Complexity and renegotiation: A foundation for incomplete contracts. Rev. Econom. Stud. 66(1):57–82.CrossrefGoogle Scholar
  • Susarla A, Krishnan R (2015) Influence of observable but unverifiable information on contract form. Mimeo, Michigan State University, East Lansing.Google Scholar
  • Williamson O (1985) The Economic Institutions of Capitalism (Free Press, New York).Google Scholar
  • Williamson O (1993) Opportunism and its critics. Managerial Decision Econom. 14(2):97–107.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.