Value-cre­at­ing con­tracts

Course content

Contracts establish the framework for value-creating and innovative business cooperation. They establish incentives, allocate risk, and create processes for re-negotiation and information exchange. To design optimal contracts, and to carry them out productively through modern contract management techniques, requires an understanding of both classical and behavioral contract theory where the latter includes psychological factors such as reciprocity, trust, and identity. The course includes both theories and illustrates their usefulness through real-world cases in which the students are asked to choose a contracting strategy or to design or negotiate a contract.

Professor Lisa Bernstein, who is world renown expert on how contracts are applied in reality, will co-teach theories and cases, drawing in part on her recent work on managerial outsourcing contracts.

Also, some learning objectives are inspired by the work of the World Commerce and Contracting organization (worldcc.com), enabling students to apply for its apprenticeship program in large international companies.