Search Results - subject:"Incomplete contracts"

Incomplete contracts and optimal ownership of public goods

Schmitz, Patrick W. - Volkswirtschaftliche Fakultät, … - 2012

The government and a non-governmental organization (NGO) can invest in the provision of a public good. In an incomplete contracting framework, Besley and Ghatak (2001) have argued that the party who values the public good most should be the owner. We show that this conclusion relies on their...

Persistent link: https://www.econbiz.de/10011113909

Public-private partnerships versus traditional procurement: Innovation incentives and information gathering

Hoppe, Eva I.; Schmitz, Patrick W. - Volkswirtschaftliche Fakultät, … - 2012

A government agency wants a facility to be built and managed to provide a public service. Two different modes of provision are considered. In a public-private partnership, the tasks of building and managing are bundled, whereas under traditional procurement, these tasks are delegated to separate...

Persistent link: https://www.econbiz.de/10011114560

Trade Liberalization and Organizational Change

Conconi, Paola; Legros, Patrick; Newman, Andrew - Solvay Brussels School of Economics and Management, … - 2012

We embed a simple incomplete-contracts model of organization design in a standard two-country perfectly …

Persistent link: https://www.econbiz.de/10011205427

THE THEORIES OF INCOMPLETE CONTRACTS IN ANALYZING THE COMPANY

Anca, Pacala - In: Annals of Faculty of Economics 1 (2012) 1, pp. 554-561

Incomplete contracts theories have developed significantly in recent decades, although insistence for rigorous models … costs, incomplete contracts theory tries to analyze the prudence displayed by the parties before the possible opportunistic … contractual protection measures can lead to inefficient levels of investment. Even the name - incomplete contracts theory …

Persistent link: https://www.econbiz.de/10010817128

Experimental Labor Markets and Policy Considerations: Incomplete Contracts and Macroeconomic Aspects

Casoria, Fortuna; Riedl, Arno - Institute for the Study of Labor (IZA) - 2012

This survey focuses on experimental labor markets investigating two aspects that deem us important for a better understanding of labor market relations and the consequences for labor market policies. The first part of the survey is dedicated to papers that assess the prevalence of reciprocal...

Persistent link: https://www.econbiz.de/10010884075

Asymmetric Awareness and Moral Hazard

Auster, Sarah - Department of Economics, European University Institute - 2012

This paper introduces asymmetric awareness into the classical principal-agent model and discusses the optimal contract between a fully aware principal and an unaware agent. The principal enlarges the agent's awareness strategically when proposing the contract. He faces a trade-off between...

Persistent link: https://www.econbiz.de/10010905867

A Matter of Interpretation: Ambiguous Contracts and Liquidated Damages

Grant, Simon; Kline, Jeff; Quiggin, John - School of Economics, University of Queensland - 2012

We focus on syntactic aspects of differential awareness that give rise to contractual disputes. Boundedly rational parties use a common language, but do not share a common understanding of the world, leading to ambiguity in both syntactic and semantic forms. In contractual relationships,...

Persistent link: https://www.econbiz.de/10010911005

Differential awareness, ambiguity, and incomplete contracts: a model of contractual disputes

Grant, Simon; Kline, Jeff; Quiggin, John - School of Economics, University of Queensland - 2012

We focus on aspects of differential awareness that give rise to contractual disputes. Parties to a contract are boundedly rational as the state space available to them is coarser than the complete state space. Hence, they may disagree as to which state of the world has occurred, and therefore as...

Persistent link: https://www.econbiz.de/10010911027

Hybrid Modes of Organization. Alliances, Joint Ventures, Networks, and Other 'Strange' Animals

Ménard, Claude - HAL - 2012

The central message conveyed in this chapter is that there is a whole class of economic organizations that contribute substantially to what Coase (1992) called "the institutional structure of production". These arrangements fall neither under pure market relationships nor within 'firm...

Persistent link: https://www.econbiz.de/10011025598

A Theory of Ex Post Inefficient Renegotiation

Herweg, Fabian; Schmidt, Klaus M. - Volkswirtschaftliche Fakultät, … - 2012

We propose a theory of ex post inefficient renegotiation that is based on loss aversion. When two parties write a long-term contract that has to be renegotiated after the realization of the state of the world, they take the initial contract as a reference point to which they compare gains and...

Persistent link: https://www.econbiz.de/10010583866