Questions tagged [contracts]

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How does a perpetual futures contract affects the price of the underlying?

As long as I understand, a futures contract is kind of a prediction for the underlying's price at the time when it expires. But what happens if this futures contract is perpetual, and doesn't have a ...
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1answer
132 views

Relation between incomplete contracting and the principal agent problem?

I have read about incomplete contracts in the context of vertical integration of firms, in which the two contracting parties are relatively "symmetric" (we cannot say that one is the agent and the ...
2
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1answer
161 views

Are there “Grossman/Hart/Moore” models without efficient negotiation outcomes?

Sanford Grossman, Oliver Hart, and John Moore have developed a theory of the firm based on incomplete contracting (Hart was awarded the Nobel Prize in 2016 for this branch of the literature). In the ...
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1answer
891 views

No competitive equilibrium for pooling contracts

In class we dealt with insurance economics and, specifically, adverse selection due to information asymmetry. As one possible solution we considered pooling contracts, i.e. the same contract for both ...
3
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32 views

EU-Canada Comprehensive Economic and Trade Agreement?

Once applied, CETA will offer EU firms more and better business opportunities in Canada and support jobs in the EU, it will remove customs duties, end restrictions on access to public contracts, open-...