Christian Zehnder
University of Lausanne



(Thursday, 18th May 2023)

Title : Contracts, Perceptions, and Behavior

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From a traditional point of view, contracts govern economic exchanges by defining parties' rights and obligations. Recent research provides a complementary perspective arguing that contracts also have important psychological implications. The central idea is that contracts shape expectations and therewith determine feelings of entitlement. If expectations are misaligned, conflicts may emerge and counterproductive behavior may reduce efficiency. These behavioral mechanisms raise important new questions for contract design.