Working Paper: CEPR ID: DP16803
Authors: Robert Gibbons
Abstract: This essay explores six sentences from Oliver Williamson— five providing context and the sixth the central topic. Decades ago, Williamson asserted that: (a) “substantially the same factors” (1973: 316) create governance issues not only within organizations but also in interactions between organizations; and (b) relational contracting might be useful in addressing these issues in both domains (1979, Figure II). More recently—in an informal conversation in 2002—he suggested a perspective on relational contracting that appears valuable in both of these domains: relational contracts as “deals that start when you sign them.” The bulk of this essay explores past, present, and potential research on this perspective.
Keywords: clarity problem; relational contract; Williamson
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| relational contracts (L14) | mitigate governance issues (G38) |
| governance structures (G38) | organizational performance (L25) |
| relational contracts (L14) | governance structures (G38) |
| relational contracts (L14) | quality of relationships (L15) |
| quality of relationships (L15) | organizational outcomes (L29) |