Project title Double moral hazard in informal contracts
Duration  10 weeks
Description

We conducted an experiment that examines informal contracts where both buyers and sellers can renege on their initial agreement. We study how the introduction of an intermediary institution where buyers may deposit the value of payment initially agreed with the seller may resolve contract breaches.

Expected outcomes & deliverables

An early draft of the paper is available. The student will be expected to write the theoretical framework of the paper, and carry out econometric analysis in STATA.

Student qualities

This project is particularly suited to students with a strong interest in microeconomics and econometrics. Familiarity with the statistical software package Stata is a must.

Primary supervisor

Dr Alex Karakostas

Further information Students are encouraged to contact the supervisor via email if they have any questions: a.karakostas@uq.edu.au.