%0 Journal Article
%T Contextual Contracts: On a Context
%A Prateek Goorha
%J Journal of Interdisciplinary Economics
%@ 2321-5305
%D 2018
%R 10.1177/0260107917740510
%X I propose a method for introducing ¡®context¡¯ within the contractual environment based on a simple and intuitive application of control theory. The approach permits looking at several interesting practical features of contracts, be they incomplete, complete or smart, within a single framework. I define a contextual environment with the help of an interaction between three distinct spaces: a market-based contractual space framed within a formal institutional space and an even larger cultural space. Each space is characterized by a governing law built on a selection of control mechanisms that differ in their approach as well as their reliance on information generated from feedback mechanisms. I suggest how these governing laws tie the contextual spaces together and present some ideas on how they evolve through their interactions with other spaces. JEL: D20, D86, P50, Z1
%K Contract theory
%K institutions
%K control process theory
%K culture
%K context
%U https://journals.sagepub.com/doi/full/10.1177/0260107917740510