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More is Less: Why Parties May Deliberately Write Incomplete Contracts (Elements in Law, Economics and Politics) - Tapa blanda

Halonen-Akatwijuka, Maija

 
9781009396073: More is Less: Why Parties May Deliberately Write Incomplete Contracts (Elements in Law, Economics and Politics)
Tapa blanda
ISBN 10: 1009396072 ISBN 13: 9781009396073
Editorial: Cambridge University Press, 2024

Sinopsis

Why are contracts incomplete? Transaction costs and bounded rationality cannot be a total explanation since states of the world are often describable, foreseeable, and yet are not mentioned in a contract. Asymmetric information theories also have limitations. We offer an explanation based on 'contracts as reference points'. Including a contingency of the form, 'The buyer will require a good in event E', has a benefit and a cost. The benefit is that if E occurs there is less to argue about; the cost is that the additional reference point provided by the outcome in E can hinder (re)negotiation in states outside E. We show that if parties agree about a reasonable division of surplus, an incomplete contract is strictly superior to a contingent contract. If parties have different views about the division of surplus, an incomplete contract can be superior if including a contingency would lead to divergent reference points.

"Sinopsis" puede pertenecer a otra edición de este libro.

Editorial
Cambridge University Press
Año de publicación
2024
Idioma
Inglés
ISBN 10 
1009396072
ISBN 13 
9781009396073
Encuadernación
Tapa blanda
Número de páginas
34
Contacto del fabricante
no disponible
Persona responsable
Avery
https://www.avery.fr/

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Dardilly
Francia