RELATIONSHIP CONTRACTING

Principal Investigators: Prof. Antoinette Schoar (MIT USA), Prof. Rajkamal Iyer (MIT USA)
Research Team: John Victor Arun Kumar
LEAD Centre: Small Enterprise Finance Centre (SEFC)
Focus Area: SME Finance
Project Geography: Tamil Nadu
Partner:
Status: Completed

Background:

The objective of the study is to understand how length of relationship affects transactions when buyer / seller goes through stress or shocks? By audit methodology we plan to simulate real time business transactions between the sellers and our mystery shoppers and thereby build relationship over a number of repeated transactions .Thus from the observations of these transactions, we can understand the effect of various kind of stress at various length of relationship between the seller and buyer affect transaction outcome.