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Why are contracts incomplete? Asymmetric information theories also have limitations. This Element offers an explanation based on contracts as 'reference points' showing if parties have different views about the division of surplus, an incomplete contract can be superior if including a contingency would lead to divergent reference points.
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More is Less, Maija Halonen-Akatwijuka, Oliver Hart
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- Released
- 2024
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- (Paperback)
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