The Contract and the Market: Towards a Broader Notion of Transaction?

Studi e Note di Economia, Anno XII, n. 1-2007, pagg. 07-22

16 Pages Posted: 29 Jul 2014

See all articles by Antonio Nicita

Antonio Nicita

University of Siena - Department of Economics

Massimiliano Vatiero

Università della Svizzera italiana; University of Trento

Date Written: July 29, 2007

Abstract

This paper seeks to extend the standard assumption concerning incomplete contracts (New Institutional Economics). It is based on a very specific market transaction, within which parties can not affect the market structure. Instead, referring to transaction as introduced by John R. Commons, we want to stress in an incomplete contract the impact of competition dynamics on parties "bargaining power and parties" incentives to influence market competition in order to enhance their bargaining power. This view leads to broader and (sometimes divergent) results with respect to standard literature on incomplete contract.

JEL Classification: D23, L12, L14, L21, L22, L42

Suggested Citation

Nicita, Antonio and Vatiero, Massimiliano, The Contract and the Market: Towards a Broader Notion of Transaction? (July 29, 2007). Studi e Note di Economia, Anno XII, n. 1-2007, pagg. 07-22. Available at SSRN: https://ssrn.com/abstract=2473437 or http://dx.doi.org/10.2139/ssrn.2473437

Antonio Nicita

University of Siena - Department of Economics ( email )

Piazza S. Francesco, 7
Siena, I-53100
Italy

Massimiliano Vatiero (Contact Author)

Università della Svizzera italiana ( email )

Via Giuseppe Buffi, n. 13
Lugano, Ticino 6900
Switzerland

University of Trento ( email )

Via Inama, 5
Trento, Trento 38122
Italy

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