The Inherent Failures of Long-Term Contracts — and How to Fix Them
Oliver Hart, Nobel-winning Harvard economist, and Kate Vitasek, faculty at the University of Tennessee, argue that many business contracts are imperfect, no matter how bulletproof you try to make them. Especially in complicated relationships such as outsourcing, one side ends up feeling like they're getting a bad deal, and it can spiral into a tit for tat battle. Hart and Vitasek argue that companies should instead adopt so-called relational contracts. Their research shows that creating a general playbook built around principles like fairness and reciprocity offers greater benefits to both businesses. Hart and Vitasek, with the Swedish attorney David Frydlinger, cowrote the HBR article "A New Approach to Contracts."
2019-09-03
21 min
Available Results
Generated results are saved to the knowledge database for reuse and search.
No generated results are available for this episode yet.
Extract Knowledge
Pick what you want extracted first. Model, scope, and chapter options appear after a template is selected.
Generated results for public episodes are saved to the knowledge database so they can be reused and searched later.
Transcript
No transcript is available for this episode yet.
Sign in to generate a transcript for review.
Sign in
Chapters
No chapters available.