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Complexity and uncertainty define our world, now more than ever. Scholars and practitioners celebrate modular contract … to identify the types of risks introduced by modularity at the intra-contract level, among provisions, and the inter-contract … urges courts to articulate distinctions between contract types and offers tools to contract drafters to mitigate uncertainty …
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The Coase Theorem is analyzed in a setting in which pollution damages are a stochastic function of emissions and of natural environmental variability (e.g., weather). When pollution damages are stochastic, emissions create financial risks. Pollution levels allowed under Coasian contracts then in...
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govern their cooperation with. We find that a limited contract is more efficient than a comprehensive contract if partners … information and incentives to invest in quality, a comprehensive contract is likely to be more efficient. These findings offer an …
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"This paper focuses on avoidable moral hazard and offers one explanation for limited insurance markets, for closely held firms, and for seemingly simple as opposed to contingent forms of debt. Agents have random endowments of a consumption good which are such that there are gains to trading...
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