Relational Adaptation Under Reel Authority

• 成果类型: Article
• 署名作者: Barron, Daniel; Gibbons, Robert; Gil, Ricard; Murphy, Kevin J.
• 署名单位: Northwestern University; Massachusetts Institute of Technology (MIT); Queens University - Canada; University of Southern California
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2019.3292
• 发表日期: 2020
• 页码: 1868-1889
• 关键词: adaptation; RENEGOTIATION; RELATIONAL CONTRACTS

摘要

We study relationships between parties who have different preferences about how to tailor decisions to changing circumstances. Our model suggests that relational contracts supported by formal contracts may achieve relational adaptation that improves on adaptation decisions achieved by formal or relational contracts alone. Our empirics consider revenue-sharing contracts between movie distributors and an exhibitor. The exhibitor has discretion about whether and when to show a movie, and the parties frequently renegotiate formal contracts after a movie has finished its run. We document that such ex post renegotiation is consistent with the distributor rewarding the exhibitor for adaptation decisions that improve their joint payoffs.