Dual anchors in the shadow of the future: how renewal expectations and relational history govern behavior in public contracts.

This study extends relational contract theory by showing how behavioral reference points can be established through policy. We theorize that contracts are governed by dual anchors: backward-looking relational history and forward-looking renewal expectations. Analyzing 430 public legal service contra...

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Publicado en:Journal of Public Administration Research & Theory Vol. 36; no. 3; pp. 329 - 343
Autores principales: Malatesta, Deanna, Cheema, Faisal Saeed
Formato: Artículo
Publicado: Oxford University Press / USA Jul2026
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Jul2026
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        atl: Dual anchors in the shadow of the future: how renewal expectations and relational history govern behavior in public contracts.
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          Malatesta, Deanna
          Cheema, Faisal Saeed
        affil: O'Neill School of Public & Environmental Affairs, Indiana University, Bloomington, IN, United States
      su:
        Public contracts
        Contract theory
        Corporate purchasing
      sug:
        subj:
          Public contracts
          Contract theory
          Corporate purchasing
      keyword:
        contracts-as-reference-point
        copyrightHolder:Public Management Research Association
        copyrightYear:2026
        inLanguage:en
        public procurement
        publisher:Oxford University Press
        rate increases
        relational contracting
        renewal expectations
        sameAs:https://dx.doi.org/10.1093/jopart/muag010
        shadow of the future
        contracts-as-reference-point
        copyrightHolder:Public Management Research Association
        copyrightYear:2026
        inLanguage:en
        public procurement
        publisher:Oxford University Press
        rate increases
        relational contracting
        renewal expectations
        sameAs:https://dx.doi.org/10.1093/jopart/muag010
        shadow of the future
      ab: This study extends relational contract theory by showing how behavioral reference points can be established through policy. We theorize that contracts are governed by dual anchors: backward-looking relational history and forward-looking renewal expectations. Analyzing 430 public legal service contracts using Heckman selection models, we find relational history increases prices in amendments, revealing its "dark side." A nonbinding renewal clause, however, significantly attenuates this effect, reducing price increase probability by up to 37 percentage points. These findings resolve the puzzle that renewal clauses, though present in fewer than half of contracts, disproportionately appear in amended agreements. The clause does not guarantee renewal but alters behavioral logic, transforming the supplier's reference point from backward-looking entitlement to forward-looking relationship preservation. Our findings provide microfoundations for how institutions structure relational dynamics and demonstrate how procurement design can shape expectations to improve outcomes.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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