@article {238511,
	title = {Continuing Contracts},
	journal = {Journal of Law, Economics, and Organization},
	volume = {36},
	number = {2},
	year = {2020},
	pages = {284-313},
	abstract = {
	\&nbsp;



	Parties often regulate their relationships through {\textquotedblleft}continuing{\textquotedblright} contracts that are not fixed term but roll over: employment is a leading example.\&nbsp; 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.\&nbsp; A continuing contract can reduce (re)negotiation costs relative to a short-term or long-term contract.\&nbsp; However, fair bargaining makes adjusting to outside options difficult and may cause inefficient outcomes.\&nbsp; An implicit promise of a long-term relationship, as in employment, can improve matters.\&nbsp;



	\&nbsp;

},
	url = {https://academic.oup.com/jleo/advance-article/doi/10.1093/jleo/ewz022/5717393?guestAccessKey=3064583f-6d17-4d84-ba35-dd789f2c81a5},
	author = {Maija Halonen-Akatwijuka and Oliver Hart}
}
