Abstract

Parties often regulate their relationships through “continuing” contracts that are not fixed term but roll over: employment is a leading example. Our premise is that parties apply fairness when they revise a continuing contract and that prior terms, together with market information, will be a reference point. A continuing contract can reduce (re)negotiation costs relative to a short-term or long-term contract. However, fair bargaining makes adjusting to outside options difficult and may cause inefficient outcomes. An implicit promise of a long-term relationship, as in employment, can improve matters. (JEL D23, D86, K12).

中文翻译：

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连续合同

摘要

缔约方通常通过不固定期限但可以延期的“持续”合同来规范他们的关系：就业是一个很好的例子。我们的前提是，当各方在修订连续合同时应保持公平，并且先前的条款以及市场信息将是参考点。相对于短期或长期合同，连续合同可以减少（重新）谈判成本。但是，公平的讨价还价使适应外部选择变得困难，并且可能导致无效的结果。长期关系的隐含承诺（例如在就业中）可以改善事务。（JEL D23，D86，K12）。