The Contractual Process: Problems
This topic examines the common structure of contractual processes. It does so from a generic point of view, considering the common elements present in very different types of contract and economic relationship. The aim is to present the fundamental problems which give rise to exchange costs and analyze the principal solutions adopted to resolve or attenuate them. After describing the main categories of contractual problem and cost, difficulties in coordination and motivation are dealt with, paying particular attention to the latter: moral hazard, adverse selection and agency.