The Effect of Repeated Interaction on Contract Choice: Evidence from Offshore Drilling
研究了重复互动与高能正式合同是替代还是互补关系，发现海上钻探中重复互动越多，企业越少选择固定价格合同，表明重复互动替代了高能激励。
We argue that repeated interaction and high-powered formal contracts can be either substitutes or complements, depending on the relative impact of repeated interaction on incentive problems and contracting costs. In the offshore drilling industry, we find that oil and gas companies are less likely to choose fixed-price contracts as the frequency of their interaction with a driller increases. This supports the conclusion that repeated interaction and high-powered formal contracts are substitutes in this setting, indicating that repeated interaction reduces incentive problems more than contracting costs. In addition, we find that using instrumental variables to account for the endogenous matching of drillers to projects strengthens our results.