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A contingent contract is an agreement that states which actions under certain conditions will result in specific outcomes. [1] Contingent contracts usually occur when negotiating parties fail to reach an agreement. The contract is characterized as "contingent" because the terms are not final and are based on certain events or conditions ...
In contract law, an incomplete contract is one that is defective or uncertain in a material respect. A complete contract in economic theory means a contract which provides for the rights, obligations and remedies of the parties in every possible state of the world. [1]
In financial economics, contingent claim analysis is widely used as a framework both for developing pricing models, and for extending the theory. [6] Thus, from its origins in option pricing and the valuation of corporate liabilities, [ 7 ] it has become a major approach to intertemporal equilibrium under uncertainty .
[13] [14] Taken together, whether or not suitable contracts can solve the hold-up problem is disputed in contract theory. [15] In an experimental study, Hoppe and Schmitz (2011) found that option contracts may alleviate the hold-up problem even when renegotiation is possible, which may be explained by Hart and Moore's (2008) idea that contracts ...
Contract theory in economics began with 1991 Nobel Laureate Ronald H. Coase's 1937 article "The Nature of the Firm". Coase notes that "the longer the duration of a contract regarding the supply of goods or services due to the difficulty of forecasting, then the less likely and less appropriate it is for the buyer to specify what the other party should do."
Learn about contingent staffing, including what it is and how to get started with a contingent workforce. Find the benefits, plus other essential information. Contingent Staffing: Essentials and ...
For example, if the economy lacks the institutions to guarantee that the contracts are enforced, it is unlikely that agents will either sell or buy these securities. Another common way to motivate the absence of state contingent securities is asymmetric information between agents. For example, the realization of labor income for a given ...
If you've been having trouble with any of the connections or words in Saturday's puzzle, you're not alone and these hints should definitely help you out. Plus, I'll reveal the answers further down