Numerous contract scenarios in information technology goods and services, telecommunications, digital entertainment, and supply chain contracting feature demand uncertainty for individual customers (demand is subject to idiosyncratic demand shocks that change marginal valuations). Sellers in these scenarios often use non-linear pricing mechanisms (flat rate, two part tariffs, three-part tariffs...

Finland has launched a new policy programme (METSO) to enhance conservation of forest biodiversity. In non-industrial private forests, the policy is based on economic incentives and voluntarism on the part of forest owners. While biodiversity conservation is the main target of the policy, social acceptability is considered to be of great importance. This study examined the factors that affect t...

Based on a supply chain framework, we study the stocking decision of a downstream buyer who receives private demand information and has the incentive to influence her capital market valuation. We first characterize a market equilibrium under a general, single buy-back contract. We show that the buyer’s stocking decision can be distorted in equilibrium. Such a downstream stocking distortion hurt...

the principle of sovereignty of will is taken into consideration in jurisprudence and law as one fundamental, significant principle. one instant of declaring sovereignty of will is the right to cancel the contract through option of condition. that the contracts are subject to the option of condition is easily accepted – though whether this is acceptable with some instants of contracts such as m...

We study the relation between specifications of component behaviors and contracts providing means to specify assumptions on environments as well as component guarantees. We show how a contract framework can be built in a generic way on top of any specification theory which supports composition and specification refinement. Our contract framework lifts refinement to the level of contracts and pr...

Two alternative long-term marketing contracts between producers and packers were compared over a 10-year period. Contracts offered in the industry differ greatly. The two contracts considered here represent a cost-plus contract and a $38-48 window price contract. They were compared using actual prices from 1986-1996 and at prices that were five percent lower than actual prices. Both contracts r...

Contracts are a pragmatic tool for managing software systems, but programs using contracts suffer runtime overhead. If this overhead becomes a performance bottleneck, programmers must manually edit or remove their contracts. This is no good. Rather, the contracts should identify their own inefficiencies and remove unnecessary dynamic checks. Implementing contracts with Rosette is a promising wa...

In this paper, seller-buyer supply chain coordination with general side-payment contracts is introduced to gain the maximum possible chain profit. In our model, the logistics costs for both buyer and seller are considered and the final demand is also supposed to be a decreasing function of the retail price. Since parties aim to maximize their individual profits, the contractual parameters are s...

We develop a model, based on asymmetric information, which provides a rational explanation for the persistent use of royalties alongside equity in university technology transfer. The model shows how royalties, through their value destroying distortions, can act as a screening tool that allows a less informed principal, such as the university’s Technology Transfer Office (TTO), to elicit private...

The government may delegate two sequential tasks (e.g., building and operating an infrastructure) to the same or different agents (i.e., partnership vs. contracts). Agents are risk-neutral but face financial constraints, whereas government's contractual capacity be limited by renegotiation-proofness fiscal constraints. By relying on history-dependent incentives, contract corrects moral hazard m...