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Formal contracts in the presence of relational enforcement mechanisms: evidence from technology development projects.

Publication: Management Science
Publication Date: 01-JUN-09
Format: Online
Delivery: Immediate Online Access

Article Excerpt
Contrary to traditional intuition, contracts for inter-firm technology development are more detailed with repeated interactions. Moreover, not only are many of the terms in these agreements not verifiable or easily enforceable in a court of law, the majority of contracts in our sample waive rights to court access for...

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