- Title
- Assessing the efficacy of visual contracts: an empirical study of transaction costs
- Creator
- Zan, Bingyan; Andersen, Camilla Baasch; Toohey, Lisa
- Relation
- Applied Economics Vol. 55, Issue 40, p. 4712-4726
- Publisher Link
- http://dx.doi.org/10.1080/00036846.2023.2174942
- Publisher
- Routledge
- Resource Type
- journal article
- Date
- 2023
- Description
- Visual contracts have attracted increasing attention as a human-focused approach to contract law, with proponents arguing they are a better way to effectively communicate complex terms and conditions. However, there have been only limited empirical studies of the efficacy of these contracts. This paper compares and evaluates data of responses to text and visual contracts from two large Australian companies. Drawing on theories of transaction cost economics, we undertook an empirical study of ordinary least square (OLS) regressions to examine the effectiveness of visual contracts in comparison with traditional text-based contracts. Analysis of the results demonstrates that the visual format plays a significant role in reducing the transaction costs of contracting, providing empirical confirmation of the value of contract redesign and the visual format.
- Subject
- contracts; comic book contract; visual contracts; transaction cost; economic benefit; legal design
- Identifier
- http://hdl.handle.net/1959.13/1484896
- Identifier
- uon:51441
- Identifier
- ISSN:0003-6846
- Rights
- x
- Language
- eng
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