7
votes
Lab experiments for a course in standard contract theory
There are a couple of papers by Hoppe-Schmitz in GEB that might be useful:
Hoppe, E.I. and Schmitz, P.W., 2011. Can contracts solve the hold-up problem? Experimental evidence. Games and Economic ...
- 71
3
votes
Accepted
No competitive equilibrium for pooling contracts
As one of the comments points out, there are many models of equilibria in insurance markets. But it sounds to me like you are referring to the Rothschild-Stiglitz (1976) paradigm. I will provide a ...
- 88
2
votes
Relation between incomplete contracting and the principal agent problem?
Not all principal-agent problems are the result of incomplete contracts, no. In fact, in most principal-agent problems, complete contracts are assumed.
An incomplete contract is one that cannot be ...
- 636
2
votes
Accepted
Are there "Grossman/Hart/Moore" models without efficient negotiation outcomes?
Yes, there are models that reconcile Hart’s property rights theory with Williamson’s emphasis on haggling and ex post inefficiencies.
Hart and Moore have developed a behavioral theory of contracts as ...
- 36
2
votes
Obtaining value from knowledge of how to manage a property you don't own
Assume that there exists a signaling machine - perhaps in the form of an expert council or a consultancy company - that both firm A and firm B trust.
Firm A is convinced about its own evaluation. And ...
- 3,798
1
vote
Obtaining value from knowledge of how to manage a property you don't own
Adding some more valuations to your construct (based on your comments):
Let the property value without any investment X or Y be normalized to 0.
Further value of investments X = Y = 60 (if this had ...
- 1,819
1
vote
How does a perpetual futures contract affects the price of the underlying?
(More of a long comment.)
The "futures" in "perpetual futures" found on cryptocurrency exchanges is a bit of a misnomer, as already pointed out. It's not a futures position, but a leveraged spot ...
- 2,619
1
vote
EU-Canada Comprehensive Economic and Trade Agreement?
I did not have either the time or the courage to plough through the text. The last consolidated text I could find stems from 2014 and has since been amended with an annex. Changes made are unclear to ...
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