Contracting in Japan: The Bargains People Make When Information is Costly, Commitment is Hard, Friendships are Unstable, and Suing is Not Worth It

J. Mark Ramseyer

Jul 2023 · Cambridge University Press

About this eBook

Economic arrangements, Ramseyer writes, are structured and implemented with the intent and hope that they will be carried out with 'care, intelligence, discretion, and effort.' Yet entrepreneurs work with partial information about the products, and people, they are dealing with. Contracting in Japan illustrates this by examining five sets of negotiations and unusual contractual arrangements among non-specialist businessmen, and women, in Japan. In it, Ramseyer explores how sake brewers were able to obtain and market the necessary, but difficult-to-grow, sake rice that captured the local terroir; how Buddhist temples tried to compensate for rapidly falling donations by negotiating unusual funerary contracts; and how pre-war local elites used leasing instead of loans to fund local agriculture. Ramseyer examines these entrepreneurs, discovering how they structured contracts, made credible commitments, obtained valuable information, and protected themselves from adverse consequences to create, maintain, strengthen, and leverage the social networks in which they operated.

About the author

J. Mark Ramseyer spent most of his childhood in provincial towns and cities in southern Japan, attending Japanese schools for K-6. He returned to the US for college. Before attending law school, he studied Japanese history in graduate school. Ramseyer graduated from HLS in 1982. He clerked for the Hon. Stephen Breyer (then on the First Circuit), worked for two years at Sidley & Austin (in corporate tax), and studied as a Fulbright student at the University of Tokyo. After teaching at UCLA and the University of Chicago, he came to Harvard in 1998. He has also taught or co-taught courses at several Japanese universities (in Japanese). For his contribution to mutual understanding between Japan and the US, Ramseyer was awarded the Order of the Rising Sun, Gold Rays and Neck Ribbon, by the Japanese government in 2018.