ITrust workshop Glasgow 2-4 Sep 2002

bullet1 Zoran Milosevic

bullet2 Contract

Voluntary agreement between parties

bullet3 Business issues

Purpose of contract is to...

Efficiency-seeking behaviour

Minimize transaction costs

Contract optimization

Different kinds of contracts ...

Game theory

"Principal-agent" problem:  principal wishes to hire an agent...

  • Question   How is this different from designing a good Poker playing program?

bullet3 Legal issues

  • Alleviate mistrust
    Purpose of contract is to...

    alleviate mistrust


bullet3 Business perspective

  • Interesting   Validity

    Consideration (something of value)


    Legality of purpose

    (need to worry about this to mirror real world)

  • Monitoring and enforcement
    Divergence of reality and expectations


bullet3 Question   Question about what kind (scale) of contract?

Many kinds -- one solution to cover all, tailored to specific cases? -- architectural approach

bullet3 Question This is good   Contract or relationship?

Which of these is important?

(Hmm... maybe our work is to make non-relationship contracts more efficient?)