During the last several decades, a growing body of laboratory research has shown that human subjects do not always choose to maximize material payoffs. Economists following the lead of psychologists Daniel Kahneman and Amos Tversky (1979) and Mathew Rabin (1993) have built on such research to suppose that individuals are concerned about the distribution of material rewards between themselves an...

Offshore information systems (IS) project team structures are often treated as given in extant IS research and there is little insight about what criteria should be used to structure these teams. In this study we sought to understand how IS project risks shape the structure of project teams in offshoring. Drawing on the IS project risk literature, we predicted that social and technical subsyste...

in various legal systems, with adoption of the validity of exclusion clause as a rule, in the exceptional instances for the reason of social importance of the matter and contrary to the public policy, exclusion clause is void. thus, in the case of death; bodily injuries; deliberated breach of contract or legal duty ;gross negligence and deception imputed to party relying to exclusion clause, it...

This paper analyzes the effects of intra-firm bargaining on the formation of firms in an economy with imperfect capital markets and contracting constraints. In a one-sided matching equilibrium endowment inequality induces a heterogenous distribution of firm sizes allowing for firms both too small and too large in terms of efficiency. The findings connect well to empirical facts such as the miss...

Most experienced negotiators are comfortable working out the terms of the “economic contract,” or the “letter of the deal” around issues such as price, investment, equity splits, governance provisions, warrantees, and exit clauses. Yet even where the economics are compelling, the “spirit of the deal” or “social contract” can get short shrift. Though the parties sign the same deal, their minds m...

We examine whether psychological contract theory and social response theory can explain users’ responses to e-commerce recommendation agents (RAs). Theories of social response to technology, trust in technology, and technology adoption are used to adapt psychological contract theory to explain user-RA relationship. We theorize that a psychological contract breach will cause a negative emotional...

It is standard in agency theory to search for incentive-compatible mechanisms on the assumption that people care only about their own material wealth. Yet it may be useful to consider social forces in mechanism design and contract theory. We devise an experiment to explore optimal contracts in a hidden information context. A principal offers one of three possible contract menus to a team of two...