Grant, Simon; Kline, J. Jude; Quiggin, John - In: Journal of Economic Behavior & Organization 82 (2012) 2, pp. 494-504
We focus on aspects of differential awareness that give rise to contractual disputes. Parties to a contract are boundedly rational as the state space available to them is coarser than the complete state space. Hence, they may disagree as to which state of the world has occurred, and therefore as...