Please use this identifier to cite or link to this item:
Stähler, Frank
Year of Publication: 
[Publisher:] Institut für Weltwirtschaft (IfW) [Place:] Kiel [Year:] 1992
Series/Report no.: 
Kiel Working Paper 541
This paper shows that in-kind-transfers are an effective instrument to stabilize agreements when compliance cannot be guaranteed. It demonstrates the weak superiority of in-kind-transfers for a unilateral relationship between two agents. In particular, it proves that, under conditions of perfect knowledge and necessary selfenforcement of contracts, both agents are at least not worse off by in-kind-transfers compared to monetary payments when no selfenforcing contract exists which,is based on monetary payments. This result holds for finitely and for infinitely repeated games.
Document Type: 
Working Paper
Document Version: 
Digitized Version

Files in This Item:
889.67 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.