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Optimal At-Will Contracts

Author

Listed:
  • Nosal, E.

Abstract

In this paper a stylized labour contarct model is constructed where it is shown that when contracts are enforced by a specific performance rule, then above mentioned unfortunate features emerge. Thse features 'disappear' when the environment is amended by assuming that the court uses an at-will rule to enforce contracts.

Suggested Citation

  • Nosal, E., 1996. "Optimal At-Will Contracts," Working Papers 9615, University of Waterloo, Department of Economics.
    • Handle: RePEc:wat:wpaper:9615
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    More about this item

    Keywords

    CONTRACTS; ECONOMIC MODELS; GAME THEORY; LABOUR;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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