Incomplete contracts: where do we stand?
Article Abstract:
Several conclusions have been derived from studying the methodological issues of the economic relevance of incomplete contracts. For instance, it has been observed that incomplete contract models assume that parties to a contract employ dynamic programming to study the consequences of contract forms and post-contractual decisions. The indescribability of contingencies has no bearing on the benefits that can be obtained through contracting by the parties involved. The indescribability of contingencies become expensive when they are ex post observable by enforcement agencies.
Publication Name: Econometrica
Subject: Mathematics
ISSN: 0012-9682
Year: 1999
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Implementation and horizontal equity imply no-envy
Article Abstract:
An analysis of the no-envy property in monotonically closed domains reveals that the property may be satisfied if the allocation rules are Nash implementable and horizontally equitable. The study also reveals that there may be difficulty in implementing the no-envy property in Quasi-linear domains and that the no-envy property stating equal treatment of equals is justified.
Publication Name: Econometrica
Subject: Mathematics
ISSN: 0012-9682
Year: 1997
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