Third Parties and Contract Design: The Case of Contracts for Technology Transfer

Managerial and Decision Economics, Forthcoming

49 Pages Posted: 29 Mar 2015

Date Written: March 27, 2015

Abstract

Given the challenges associated with drafting technology-transfer contracts, we examine decisions to involve third parties offering technical or legal support in the contract-drafting process. We first argue that the attributes of the transaction are key drivers of third-party involvement. We then draw on the behavioral theory of the firm to develop arguments regarding the influence of third parties on contract complexity. Our results reveal that the involvement of legal third parties tends to magnify the contract’s overall complexity. In contrast, the involvement of technical third parties reduces the inclusion of monitoring provisions and increases the inclusion of coordination provisions.

Keywords: Contract design; third party; technical support; legal support; technology transfer; behavioral theory

Suggested Citation

Duplat, Valerie and Lumineau, Fabrice, Third Parties and Contract Design: The Case of Contracts for Technology Transfer (March 27, 2015). Managerial and Decision Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2586338

Valerie Duplat

EDHEC Business School ( email )

58 rue du Port
Lille, 59046
France

Fabrice Lumineau (Contact Author)

Purdue University ( email )

610 Purdue Mall
West Lafayette, IN 47906
United States

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