Anderlini, Luca; Felli, Leonardo; Postlewaite, Andrew - Department of Economics, University of Pennsylvania - 2001
We study a contracting model with unforeseen contingencies in which the court is an active player. Ex-ante, the contracting parties cannot include the risky unforeseen contingencies in the contract they draw up. Ex-post the court observes whether an unforeseen contingency occurred, and decides...
