Definition of Implicit Contract / Implicit Contracts: An implicit contract is a non-contractual agreement that corresponds to a Nash equilibrium to the repeated bilateral trading game other than the sequence of Nash equilibria to the one-shot trading game.

In the labor market -- an implicit contract is formally represented by a series of games in which the firm pays a salary and the employee works effectively because they expect to play the game again (continue the agreement) if it goes well, not because they have an explicit, enforceable contract. (Econterms)

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