CEIS-Tor Vergata is pleased to inform you that, on Friday March 15th, 2013 at 12.00 pm, prof. Maija Halonen-Akatwijuka (University of Bristol) will present a paper on “More is Less: Why Parties May Deliberately Write Incomplete Contracts” ABSTRACT Why are contracts incomplete? Transaction costs or asymmetric information cannot be a total explanation since states of the world are often easily describable and yet are not mentioned in a contract. 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 can be strictly superior to a contingent contract. The Seminar will be held at the Faculty of Economics, University of Rome "Tor Vergata", B-building, 1° floor, room B Please, go to www.ceistorvergata.it for the complete list of seminars and events at CEIS. How to reach us: http://web.uniroma2.it/mobilita/index.html http://www.economia.uniroma2.it/area.asp?a=867 Barbara Piazzi __________ Informazioni da ESET NOD32 Antivirus, versione del database delle firme digitali 8081 (20130305) __________ Il messaggio è stato controllato da ESET NOD32 Antivirus. www.nod32.it |
Archivio con motore MhonArc 2.6.16.