Behind every partnership lurks an “incomplete contract” — a concept for which Harvard’s Oliver Hart just earned a Nobel prize in economics with MIT’s Bengt Holmstrom, who worked on related topics. This Nobel is the third to go to scholars working on what economists today call contract theory. The late Ronald Coase, the grandfather of the field, and UC Berkeley’s Oliver Williamson have already received Nobel prizes in economics for this line of thinking.
Why Your Partnership Contract Is Too Important to Be Left to the Lawyers
Managing in the face of incomplete contracts.
October 10, 2016