Empirical Models of Bilateral Contracting
Title
Empirical Models of Bilateral Contracting
Author
Lee, Robin S.
Research Area
Social Institutions
Topic
Work and the Economy
Abstract
This essay briefly surveys the empirical literature on bilateral contracting. The focus is on contracting between firms in vertical markets, and I discuss recent approaches to modeling their determination and the impact of contractual restrictions on competition, industry structure, and welfare. I also highlight challenges facing future research in this area.