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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 ...
framue's user avatar
  • 71
3 votes

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 ...
saturno's user avatar
  • 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 ...
NickCHK's user avatar
  • 636
2 votes

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 ...
tracotheo's user avatar
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 ...
Jesper Hybel's user avatar
  • 3,431
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 ...
Dayne's user avatar
  • 1,735
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 ...
Michael's user avatar
  • 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 ...
Matthias dirickx's user avatar

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