Iossa, Elisabetta; Martimort, David - Istituto di Economia e Politica dell'Energia e … - 2014
In a public procurement setting, we discuss the desirability of completing contracts with state-contingent clauses … entails contracting costs that make incomplete contracts attractive, despite their higher agency costs. A public official … to that lower-tier may result in incomplete contracts being chosen too often. Empirical predictions on the use of …