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Indescribability and asymmetric information at the contracting stage

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Author Info
Kunimoto, Takashi

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Abstract

Maskin and Tirole [Maskin, E., Tirole, J., 1999. Unforeseen contingencies and incomplete contracts. Review of Economic Studies, 66, 83-114] show that indescribability does not matter for contractual incompleteness when there is symmetric information both at the contracting stage and at the trading stage. Following their setup, I show that with asymmetric information at both stages, indescribability can matter.

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Publisher Info
Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 99 (2008)
Issue (Month): 2 (May)
Pages: 367-370
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Handle: RePEc:eee:ecolet:v:99:y:2008:i:2:p:367-370

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