Costly Contract Contingencies, International Economic Review
Studies the development of an equilibrium model of costly contingent contracts. Specifications of the model; Definitions of spot market equilibrium and active contract market equilibrium; Influence of contracting cost on optimal contracts between consumers and producers; Characteristics of equilibrium contracts.
Dye, A. Ronald. 1985. Costly Contract Contingencies. International Economic Review. 26(1): 233-250.