Bester, Helmut; Krähmer, Daniel - Volkswirtschaftliche Fakultät, … - 2008
This paper analyzes bilateral contracting in an environment with contractual incompleteness and asymmetric information …. One party (the seller) makes an unverifiable quality choice and the other party (the buyer) has private information about … benchmark cases where either quality is verifiable or the buyer’s valuation is public information. But, when unverifiable and …