arbiter
JournalsAccount

Designing Resilient Partnerships: Optimal Contract with Dual Incentive Structure in Uncertain Markets

Anirban Chatterjee & Subhadip Mukherjee

International Game Theory Review2026https://doi.org/10.1142/s0219198926500015article
AJG 1ABDC B
Weight
0.50

Abstract

Partnerships represent strategic alliances where two or more entities collaborate by pooling resources to achieve mutual economic benefits. However, the uncertainty surrounding the return on investment (ROI) poses significant challenges in designing optimal partnership contracts. This paper develops a game-theoretic model to structure partnership contracts under uncertain ROI, where the final investment outcome is stochastic and ex-ante unknown to both partners. The model analyzes the contract design from one partner’s perspective, considering the possibility that the other partner may face future market shocks that could affect its ability to honor its commitments to the partnership. We characterize the equilibrium of the game and propose strategies that the primary partner can adopt to mitigate risks and safeguard its interests. The findings provide insights into how strategic contract design can enhance the stability, cooperation, and efficiency of partnerships operating under uncertain market conditions.

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1142/s0219198926500015

Or copy a formatted citation

@article{anirban2026,
  title        = {{Designing Resilient Partnerships: Optimal Contract with Dual Incentive Structure in Uncertain Markets}},
  author       = {Anirban Chatterjee & Subhadip Mukherjee},
  journal      = {International Game Theory Review},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1142/s0219198926500015},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Designing Resilient Partnerships: Optimal Contract with Dual Incentive Structure in Uncertain Markets

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.