The Transactional Dynamics of Market Fragility

21 Pages Posted: 20 Apr 2022

See all articles by Matthew Jennejohn

Matthew Jennejohn

Brigham Young University - J. Reuben Clark Law School; European Corporate Governance Institute (ECGI); Johns Hopkins University Applied Physics Laboratory

Date Written: April 19, 2022

Abstract

This Article takes a step toward more clearly diagnosing market fragility for the purpose of developing better policy choices that anticipate and address future crises. It does so by connecting two erstwhile and distinct literatures: the legal scholarship on relational contracting and the social science on the diffusion of shocks in economic networks. This Article attempts to connect the strategies parties pursue in designing their agreements—a familiar topic to contract scholars—to the diffusion patterns observed in disrupted markets—an increasingly important area of study in macroeconomics. By investigating that intersection, this Article introduces a new potential policy domain for remediating market fragility: Contract design.

Keywords: markets, contract law, contract design, economic networks, relational contracting, market fragility

Suggested Citation

Jennejohn, Matthew, The Transactional Dynamics of Market Fragility (April 19, 2022). 85 Law and Contemporary Problems (2022 Forthcoming), BYU Law Research Paper No. 22-11, Available at SSRN: https://ssrn.com/abstract=4087583

Matthew Jennejohn (Contact Author)

Brigham Young University - J. Reuben Clark Law School ( email )

436 JRCB
Brigham Young University
Provo, UT 84602
United States
9175093028 (Phone)

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

Johns Hopkins University Applied Physics Laboratory ( email )

11100 Johns Hopkins Rd
Laurel, MD 20723
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
89
Abstract Views
507
Rank
611,116
PlumX Metrics