We briefly summarize the contributions of Oliver Hart and Bengt Holmström, two key founders of modern contract theory, and describe their significance for the analysis of organizations and institutions. We then discuss the foundations of modern contract theory and review some criticisms related to modeling strategy, assumptions
about knowledge and cognition, and relevance. We conclude with some suggestions for advancing contract theory in a world of uncertainty, complexity, and entrepreneurship.

Publication information

Original languageEnglish
JournalErasmus Journal for Philosophy and Economics
Issue number2
Pages (from-to)167-180
StatePublished - 2016
Externally publishedYes

ID: 45756089