LEC Workshop for Law Professors: Economics of Contracting, January 25-28, 2013


CLASS 1: Introduction to the Economics of Contracts

Masten, “Contractual Choice”, Encyclopedia of Law and Economics, Volume III: The Regulation of Contracts, pp. 25-45.

Posner, “Economic Analysis of Contract Law After Three Decades: Success or Failure?”, 112 Yale L.J. 829 (2003).
CLASS 2: Reputation and Enforcement
Background (skip if familiar)
Macaulay, “Non-Contractual Relations in Business: A Preliminary Study,” 28 Amer. Soc. Rev. 55 (1963)
Williamson, “Transaction-Cost Economics: The Governance of Contractual Relations”, 22 J. Law & Econ. 233 (1979)
Klein and Leffler, “Role of Market Forces in Assuring in Contractual Performance”, 89 J. Pol. Econ. 615 (1981)
Masten and Kosová, “Post-Sale Service and the Limits of Reputation,” Industrial and Corporate Change (forthcoming)
Joskow, “Contract Duration and Relationship-Specific Investments: Empirical Evidence from Coal Markets”, 77 Amer. Econ. Rev. 168 (1987)
CLASS 3: Relational Contracting and Price Adjustment


Milgrom and Roberts, “Risk Sharing and Incentive Contracts,” Chapter 7 in Economics, Organizations and Management (1992), pp 206-32.

Goldberg and Erickson, “Quantity and Price Adjustment in Long Term Contracts: A Case Study of Petroleum Coke”, 30 J. Law and Econ. 369 (1987)
Masten and Crocker, “Efficient Adaptation in Long Term Contracts: Take or Pay Provisions for Natural Gas”, 75 Amer. Econ. Rev. 1083 (1985) 
Masten, “Long-Term Contracts and Short-Term Commitment: Price Determination for Heterogeneous Freight Transactions”, 11 Amer. Law and Econ. Rev. 79 (2009)
Hart and Moore, “Contracts as Reference Points”, 123 Quar. J. Econ. 1 (2008)
Baker, Gibbons, and Murphy, “Subjective Performance Measures in Optimal Incentive Contracts”, 109 Quar. J. Econ. 1125 (1994)
CLASS 4: Contractual Choice I: Vertical Integration
Background (skip if familiar)
Klein, Crawford, and Alchian, “Vertical Integration, Appropriable Rents and the Competitive Contracting Process”, 21 J. Law and Econ. 297 (1978)
CLASS 5: Contractual Choice II: Vertical Restraints as Contract Enforcement
CLASS 6: Antitrust and Exclusionary Contracts