This study reports on computational experiments for an agent-based labor market-model-with adaptive choice'and refusal of work site' partners and with endogenously evolving work site behaviors. Two treatment factors ^e experimentally varied: market structure; and ex ante capacity constraints on potential work offers and job openings.Particular attentions focused on experimentally determined cor...

In service industries with congestion effects, two very different contractual structures are commonly observed, depending on whether or not firms choose to offer a guaranteed service level. We analyze the impact of these choices onmarket outcomes in oligopolistic industries. Our results highlight howdifferent contractual agreements change the intensity of price competition in service industries...

Background In times of financial hardship, making innovative treatments affordable for society, accessible for patients and profitable for pharmaceutical companies is a challenge. Reimbursement is often threatened by uncertainties about the financial impact or evidence for a treatment. A contractual agreement between the payer and pharmaceutical company can link reimbursement to financial thres...

Thinking about contingencies, designing covenants and seeing through their implications is costly. Parties to a contract accordingly use heuristics and leave it incomplete. The paper develops a model of bounded rationality and examines its consequences for contractual design. It is argued that cognition is a natural source of adverse selection in contractual relationships, that contracts may be...

Contract (custom) manufacturers of components and manufactured materials such as steel sell capacity under different contract terms to different buyers. In a common practice, the supplier offers a market standard price and lead time combination for products listed in its catalog. At the same time, it strikes annual contracts with some high-volume customers who require recurring delivery of a cu...