Cooperation among firms is governed by contracts. An interesting phenomenon is that some contracts are comprehensive while some are limited. This study tries to explain different levels of incompleteness of contracts that firms choose to govern their cooperation with. We find that a limited...

This note offers a unified framework for all contractual relationships. In particular, it defines incomplete contracts and explains simple contracts. Although widely used in practice, incomplete contracts have not been well defined in the literature. The existing definitions of contracts are...