A Framework to Build or Review Marketing and Networks Contracts
University of Sao Paulo, FEARP Working Paper No. TDA/17 2002
24 Pages Posted: 6 Feb 2003
Date Written: October 2002
The literature shows that bounded rationality makes almost impossible to build complete contracts to manage transactions between companies. Furthermore, incomplete contracts generate opportunism problems from one of the involved parts and undesirable transaction costs that could be reduced if the process of building a contract were to be done with more details (exactness). In general, businessmen do not have the instruments to facilitate this process of building and students, who will deal with contracts in various moments of their professional lives, are not trained for this activity. This article provides a model that has been successfully used as a contract analysis tool in business networks focusing on marketing actions.
Keywords: Contracts, networks, corporate governance, marketing
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