Contractual Intermediaries
Posted: 30 Jul 2002
There are 2 versions of this paper
Contractual Intermediaries
UCSD Economics Discussion Paper 97-26
Number of pages: 39
Posted: 20 Feb 1998
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Abstract
This paper analyzes the role of third party intermediaries in contract enforcement. In our model, intermediaries record information about past actions and resolve disputes when requested to do so by the contracting agents. When the verifiability of information is limited, successful enforcement requires that dispute resolution costs be sufficiently great. Optimal enforcement systems economize on dispute resolution and information costs, and may involve establishment of specific systems tailored to particular groups.
Suggested Citation: Suggested Citation
Watson, Joel and Ramey, Garey, Contractual Intermediaries. The Journal of Law, Economics, and Organization, Vol. 18, No. 2, pp. 362-384, 2002, Available at SSRN: https://ssrn.com/abstract=311388
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