Towards a Cross-Disciplinary and Contextual Contract Theory
Published as "Contextual Contracts: One a Context-sensitive Approach to Contract Theory," Journal of Interdisciplinary Economics, Volume 30, Issue 2, DOI: 10.1177/0260107917740510
20 Pages Posted: 13 Sep 2016 Last revised: 16 Jun 2018
Date Written: September 11, 2016
The paper proposes a method for introducing ‘context’ within the contractual environment based on a simple application of intuitive control theory. A market-based contractual space is framed within the larger formal institutional space and an even larger cultural space – the spaces together forming a contextual environment. Each space is characterized by a governing law built on a selection of control mechanisms that differ in their approach as well as their reliance on information from feedback. I suggest how these governing laws tie together the contextual spaces and present some ideas on how they might evolve over time through interaction with other spaces.
Keywords: Context, Culture, Contract Theory, Institutions
JEL Classification: D20, D86, P50, Z10
Suggested Citation: Suggested Citation