| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5078146 | International Journal of Industrial Organization | 2013 | 9 Pages |
Abstract
⺠We model the use of side-payments to avoid costly conflicts in a two-stage game. ⺠Conflicts can be averted when contracts create binding agreements. ⺠Lab experiments support the claim that binding contracts reduce conflict. ⺠However, non-binding contracts also reduce the costs of conflict.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Erik O. Kimbrough, Roman M. Sheremeta,