Which Mechanisms Support the Fulfillment of Sales Agreements? Asking Decision-Makers in Firms

Posted: 23 Jan 2003

See all articles by Kathryn Hendley

Kathryn Hendley

University of Wisconsin-Madison Law School; University of Wisconsin - Madison - Department of Political Science

Peter Murrell

University of Maryland - Department of Economics

Multiple version iconThere are 2 versions of this paper

Abstract

The paper proposes a methodology to obtain evidence on the relative importance of different mechanisms for supporting agreements. A survey question posed to company directors summarizes key aspects of mechanisms and asks for judgments on use. In contrast to existing approaches, the data covers the full complement of mechanisms and much economic activity, offering aggregate numerical judgments. The methodology is applied in Romania. Popular hypotheses are examined. Bilateralism is numerically dominant; the legal system is used extensively; third-party mechanisms are less important. These three mechanisms are non-complementary.

Keywords: transactions, private ordering, law, networks, transition, Romania

JEL Classification: K0, P2

Suggested Citation

Hendley, Kathryn and Murrell, Peter, Which Mechanisms Support the Fulfillment of Sales Agreements? Asking Decision-Makers in Firms. Economics Letters, 2003. Available at SSRN: https://ssrn.com/abstract=372720

Kathryn Hendley

University of Wisconsin-Madison Law School ( email )

975 Bascom Mall
Madison, WI 53706
United States
301-405-3476 (Phone)
301-405-3542 (Fax)

University of Wisconsin - Madison - Department of Political Science ( email )

1050 Bascom Mall
Madison, WI 53706
United States

Peter Murrell (Contact Author)

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States
301-405-3476 (Phone)
301-405-3542 (Fax)

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