We describe and analyze a contractual environment that allows a role for an active court. The model we analyze is the … same as in Anderlini, Felli, and Postlewaite (2006). An active court can improve on the outcome that the parties would … achieve without it. The institutional role of the court is to maximize the parties' welfare under a veil of ignorance. In …

court. An active court can improve on the outcome that the parties would achieve without it. The institutional role of the … court is to maximize the parties' welfare under a veil of ignorance.We study a buyer-seller model with asymmetric … information and ex-ante investments, in which some contingencies cannot be contracted on. The court must decide when to uphold a …

We describe and analyze a contractual environment that allows a role for an active court. The model we analyze is the … same as in Anderlini, Felli, and Postlewaite (2006). An active court can improve on the outcome that the parties would … achieve without it. The institutional role of the court is to maximize the parties' welfare under a veil of ignorance. In …

court. An active court can improve on the outcome that the parties would achieve without it. The institutional role of the … court is to maximize the parties' welfare under a veil of ignorance. We study a buyer-seller multiple-widget model with risk …-neutral agents, asymmetric information and ex-ante investments. The court must decide when to uphold a contract and when to void it …