Article ID Journal Published Year Pages File Type
5062212 Economics Letters 2008 4 Pages PDF
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.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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