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Determinants of Relational Contract Performance: Experimental Evidence

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  • Wu, Steven Y.

Abstract

This study examines the determinants of relational contractual performance using data from a series of laboratory experiments. There is currently limited empirical evidence on the determinants of contractual performance, which includes contractual acceptance, and the delivery of promised quantity/quality under the terms of the contract. While theory predicts that the primary drivers of contractual performance are high discount factors, and contract designs that obey individual rationality and self-enforcement constraints, the empirical analysis suggests that other determinants such as a history of prior cooperation can matter as much, if not more, than the theoretical constraint conditions.

Suggested Citation

  • Wu, Steven Y., 2021. "Determinants of Relational Contract Performance: Experimental Evidence," 2021 Allied Social Sciences Association (ASSA) Annual Meeting (Virtual), January 3-5, 2021, San Diego, California 308455, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:assa21:308455
    DOI: 10.22004/ag.econ.308455
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    References listed on IDEAS

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    Financial Economics; Research Methods/ Statistical Methods;

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