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mamaluj [8]
2 years ago
5

What constitutes a reason for incomplete contracts?

Social Studies
1 answer:
MissTica2 years ago
5 0

Answer:

Incomplete Contracts: Do not optimally use all commonly observ-able information. Will be renegotiated at some point in time (bargain-ing). Reasons for contractual incompleteness: Bounded rationality: Parties cannot write long-term state-contingent contracts. Cannot foresee all possible future states.

Explanation:

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