Incomplete contracts and strategic ambiguity

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WebStrategic ambiguity in policy formulation: exploring the function of the term “township and village enterprises” in china’s industrial ownership reforms DOI: Authors: Shuanping Dai Jilin... WebNov 1, 2024 · Incomplete Contracts: An Empirical Approach November 2024 Authors: Sarath Sanga Abstract The strategic ambiguity hypothesis posits that when some aspects of …

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WebNoldeke and Schmidt (1995), \Option Contracts and Renegotiation: A Solution to the Hold-up Problem," RAND Journal of Economics. Che and Sakovics (2004), \A Dynamic Theory of … WebIn this paper, I develop and test an alternative theory of incomplete contracts, the “strategic ambiguity hypothesis,” which posits that optimal formal contracts … on site mexican grill bolingbrook

DETERMINANTS OF GROWTH IN FRANCHISING CONTRACTS IN …

WebDec 19, 2015 · Project ambiguity is a project characteristic which encompasses two phenomena: The lack of awareness of elements, events and their characteristics (due to the overall lack of understandability of the project system), particularly when evaluating them. WebApr 1, 2009 · This paper suggests that founders often use firm formation to exploit opportunities and must sometimes make organizing decisions about the allocation of control before the economic value of the opportunity can reliably be known even probabilistically. onsite microsoft

Incomplete Contracts and Strategic Ambiguity B. Douglas …

WebSep 9, 2016 · We investigate (1) whether frms deliberately write incomplete contracts, and (2) if so, under which conditions. a better understanding of this phenomenon is important, because research shows that incomplete contracts can yield higher results than fully specifed ones. p]We investigate these questions using the grounded theory methodology … WebAmerican Economic Review, 88 (4), 1998, 902-932. Why are observed contracts so often incomplete in the sense that they leave contracting parties' obligations vague or … iod facebook liveWebMar 12, 2024 · While fixed-price contracts are commonly invoked in the literature under the assumption that parties to a relational contract use efficiency wages or repeat purchase mechanisms (Klein and Leffler 1981; Shapiro and Stiglitz 1984; Brown et al. 2004), they are not consistent with the theory of strategic ambiguity. iod fife

"WebSpecifically, once some aspects of performance are unverifiable, it is often optimal to leave other verifiable aspects of performance unspecified. The authors explore the conditions … " - Incomplete contracts and strategic ambiguity

Incomplete contracts and strategic ambiguity

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WebMar 28, 2024 · We introduce ambiguous states into an experimental investigation of a tradeoff between contractual rigidity and flexibility. Ambiguity magnifies both parties’ … WebMay 1, 2012 · In section 2 we present a formal model of contracting in the presence of linguistic ambiguity. Following Grant et al. (2012a), we adopt a convenient subclass of Gul and Pesendorfer's (2013 ...

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WebJan 1, 2014 · The key ex post contractual inefficiencies in strategic outsourcing initiatives stem from assumptions of opportunistic behavior and cost overruns in task execution that may be attributable to the complexity and dynamism of the outsourced task. WebIncomplete Contracts and Strategic Ambiguity. B. Douglas Bernheim and Michael Whinston. American Economic Review, 1998, vol. 88, issue 4, 902-32 Abstract: Why are observed …

WebAbstract We consider a principal's choice between either controlling an agent's action through an incomplete contract or guiding him through non-binding communication. The principal anticipates receiving private information and must hire an agent to … WebSep 9, 2016 · We investigate (1) whether frms deliberately write incomplete contracts, and (2) if so, under which conditions. a better understanding of this phenomenon is important, …

WebIncomplete contracts can create scenarios that lead to inefficient investments and market failures, but incompleteness is essentially a feasibility constraint. The 'strategic ambiguity … WebWe theoretically refine and empirically extend prior research by (a) distinguishing between control and coordination functions of contracts, (b) separating goodwill-based and competence-based trust, and (c) evaluating the effects of contract structure on relational outcomes in the context of disputes.

WebApr 12, 2024 · strategic ambiguity:the parties choose not to include all known and contractible contingencies in order to control strategic behavior in response to other …

WebOct 1, 2024 · A simple example. This section presents the simplest version of our contracting game. It illustrates some of the key features of the interplay between incomplete contracting and communication: there is an equilibrium in which the principal offers a contract that leaves gaps for, structures, and improves communication. onsite med imaginghttp://emaj.pitt.edu/ojs/emaj/article/view/23 onsite minor variation form taurangaWebthe next section, a more precise definition of strategic ambiguity is offered. Defining Strategic Ambiguity Before a definition of strategic ambiguity can be considered, I must provide a philosophical context for its understanding. The present definition of ambi-guity is a direct outgrowth of the relativist view of meaning. This Ambiguity as ... iod firmyWebNov 1, 2013 · The choice between ambiguity and commitment involves a trade-off between the potential windfall for the agent (higher with commitment) and the risk of undeserved punishment (higher with... iod flüssig apothekeWebFeb 3, 2012 · Luo Y., (2002) Contract, coorperation, and performance in International Joint Ventures.Strategic Management Journal, 23, pp.903-919. Mellewigt, T., A. Madhok and … onsite michiganWebWhy are observed contracts so often incomplete in the sense that they leave contracting parties' obligations vague or unspecified? Traditional answers to this question invoke … onsite merriamhttp://www.econ.ucla.edu/sboard/teaching/contracts_07/contracts_07_syllabus.pdf iod firma