Indescribability and asymmetric information at the contracting stage
Maskin and Tirole [Maskin, E., Tirole, J., 1999. Unforeseen contingencies and incomplete contracts. Review of Economic Studies, 66, 83–114] show that indescribability does not matter for contractual incompleteness when there is symmetric information both at the contracting stage and at the trading s...
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Veröffentlicht in: | Economics letters 2008-05, Vol.99 (2), p.367-370 |
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Format: | Artikel |
Sprache: | eng |
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Online-Zugang: | Volltext |
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Zusammenfassung: | Maskin and Tirole [Maskin, E., Tirole, J., 1999. Unforeseen contingencies and incomplete contracts. Review of Economic Studies, 66, 83–114] show that indescribability does not matter for contractual incompleteness when there is symmetric information both at the contracting stage and at the trading stage. Following their setup, I show that with
asymmetric information at both stages, indescribability can matter. |
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ISSN: | 0165-1765 1873-7374 |
DOI: | 10.1016/j.econlet.2007.08.007 |