Relational contracts are typically modelled as being between a principal and an agent, such as a firm owner and a supplier. Yet, in a variety of organizations, relationships are overseen by an intermediary such as a manager. Such arrangements open the door for collusion between the manager and the agent. Marta Troya-Martinez and Liam Wren-Lewis discuss a theory of such managed relational contracts.
Image courtesy of interviewee. October 16, 2023
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