Oliver Hart

Nobel Prize-winning economist Oliver Hart from Harvard University and Kate Vitasek from the University of Tennessee delve into the flaws of traditional long-term contracts. They discuss how rigid agreements often lead to dissatisfaction and conflict, especially in outsourcing. Advocating for relational contracts, they highlight the benefits of fairness and open communication in fostering better business relationships. Through examples like Dell and FedEx, they illustrate how a focus on collaboration can transform corporate culture and enhance mutual trust.