The Interaction of Formal and Informal Contracts in the Decision of Cooperation of the Agents
Given the existent risk of opportunism in transactions, formal and informal contracts play a central role in the decision of cooperation of the agents. The study aimed to compare the effectiveness of formal and informal contracts in the decision of cooperation of the agent and also to investigate th...
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| Format: | Article |
| Language: | English |
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FUCAPE Business School
2016-01-01
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| Series: | BBR: Brazilian Business Review |
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| Online Access: | http://www.redalyc.org/articulo.oa?id=123043477003 |
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| _version_ | 1825207344834805760 |
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| author | Tatiana Iwai |
| author_facet | Tatiana Iwai |
| author_sort | Tatiana Iwai |
| collection | DOAJ |
| description | Given the existent risk of opportunism in transactions, formal and informal contracts play a central role in the decision of cooperation of the agents. The study aimed to compare the effectiveness of formal and informal contracts in the decision of cooperation of the agent and also to investigate their joint effects of substitution or complement on the cooperation of the agents. For that, an experiment was performed to test in a laboratorial environment the behavior of agents under the pressure of both contracts. The results of the experiment showed that informal contracts are more effective to guarantee cooperation among agents. Furthermore, formal and informal contracts can be used as substitutes or complements according to the order in which they are applied. When formal contracts precede informal ones, there is an increase in cooperation levels among agents. |
| format | Article |
| id | doaj-art-6f8562d6c63b48a5a31f43d908e39206 |
| institution | Kabale University |
| issn | 1807-734X |
| language | English |
| publishDate | 2016-01-01 |
| publisher | FUCAPE Business School |
| record_format | Article |
| series | BBR: Brazilian Business Review |
| spelling | doaj-art-6f8562d6c63b48a5a31f43d908e392062025-02-06T23:39:31ZengFUCAPE Business SchoolBBR: Brazilian Business Review1807-734X2016-01-011314768The Interaction of Formal and Informal Contracts in the Decision of Cooperation of the AgentsTatiana IwaiGiven the existent risk of opportunism in transactions, formal and informal contracts play a central role in the decision of cooperation of the agents. The study aimed to compare the effectiveness of formal and informal contracts in the decision of cooperation of the agent and also to investigate their joint effects of substitution or complement on the cooperation of the agents. For that, an experiment was performed to test in a laboratorial environment the behavior of agents under the pressure of both contracts. The results of the experiment showed that informal contracts are more effective to guarantee cooperation among agents. Furthermore, formal and informal contracts can be used as substitutes or complements according to the order in which they are applied. When formal contracts precede informal ones, there is an increase in cooperation levels among agents.http://www.redalyc.org/articulo.oa?id=123043477003cooperationformal contractsinformal contracts |
| spellingShingle | Tatiana Iwai The Interaction of Formal and Informal Contracts in the Decision of Cooperation of the Agents BBR: Brazilian Business Review cooperation formal contracts informal contracts |
| title | The Interaction of Formal and Informal Contracts in the Decision of Cooperation of the Agents |
| title_full | The Interaction of Formal and Informal Contracts in the Decision of Cooperation of the Agents |
| title_fullStr | The Interaction of Formal and Informal Contracts in the Decision of Cooperation of the Agents |
| title_full_unstemmed | The Interaction of Formal and Informal Contracts in the Decision of Cooperation of the Agents |
| title_short | The Interaction of Formal and Informal Contracts in the Decision of Cooperation of the Agents |
| title_sort | interaction of formal and informal contracts in the decision of cooperation of the agents |
| topic | cooperation formal contracts informal contracts |
| url | http://www.redalyc.org/articulo.oa?id=123043477003 |
| work_keys_str_mv | AT tatianaiwai theinteractionofformalandinformalcontractsinthedecisionofcooperationoftheagents AT tatianaiwai interactionofformalandinformalcontractsinthedecisionofcooperationoftheagents |