Incomplete contracts and strategic ambiguity
WebJan 1, 2014 · The key ex post contractual inefficiencies in strategic outsourcing initiatives stem from assumptions of opportunistic behavior and cost overruns in task execution that may be attributable to the complexity and dynamism of the outsourced task. http://emaj.pitt.edu/ojs/emaj/article/view/23
Incomplete contracts and strategic ambiguity
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WebJul 5, 2012 · Why are observed contracts so often incomplete in the sense that they leave contracting parties' obligations vague or unspecified? Traditional answers to this question … WebJan 1, 2024 · An incomplete contract is an agreement that does not specify actions and payments for all possible contingencies. All but the simplest contracts are incomplete, containing ‘gaps’ that must be filled by negotiation, convention, or formal dispute resolution procedures such as courts and arbitration.
WebFeb 3, 2012 · Luo Y., (2002) Contract, coorperation, and performance in International Joint Ventures.Strategic Management Journal, 23, pp.903-919. Mellewigt, T., A. Madhok and A.Weibel (2007) Trust and Formal Contracts in Interorganizational Relationships – Substitutes and Complements. Managerial and Decision Economics 28: 833-847. WebIn this paper, I develop and test an alternative theory of incomplete contracts, the “strategic ambiguity hypothesis,” which posits that optimal formal contracts …
WebThe strategic ambiguity hypothesis posits that when some aspects of performance are observable but not verifiable, the optimal contract is deliberately incomplete. I test this … WebSep 9, 2016 · We investigate (1) whether frms deliberately write incomplete contracts, and (2) if so, under which conditions. a better understanding of this phenomenon is important, because research shows that incomplete contracts can yield higher results than fully specifed ones. p]We investigate these questions using the grounded theory methodology …
WebAmerican Economic Review, 88 (4), 1998, 902-932. Why are observed contracts so often incomplete in the sense that they leave contracting parties' obligations vague or …
WebMar 28, 2024 · We introduce ambiguous states into an experimental investigation of a tradeoff between contractual rigidity and flexibility. Ambiguity magnifies both parties’ … teams cdr retentionWebOct 1, 2024 · A simple example. This section presents the simplest version of our contracting game. It illustrates some of the key features of the interplay between incomplete contracting and communication: there is an equilibrium in which the principal offers a contract that leaves gaps for, structures, and improves communication. spa break in brightonWebIncomplete contracts can create scenarios that lead to inefficient investments and market failures, but incompleteness is essentially a feasibility constraint. The 'strategic ambiguity … spa break rowhill grangeWebMar 27, 2024 · To do so, we adapted the nine kinds of uncertainty in environmental governance proposed by Dewulf and Biesbroek to the more general context of negotiations. We first differentiate between three natures of uncertainty (i.e., lack of knowledge, unpredictability, and interpretations) and three objects of uncertainty (i.e., issue-based, … spa breaks by the seateams cefireWebWe theoretically refine and empirically extend prior research by (a) distinguishing between control and coordination functions of contracts, (b) separating goodwill-based and competence-based trust, and (c) evaluating the effects of contract structure on relational outcomes in the context of disputes. teams cd音声共有WebIncomplete Contracts and Strategic Ambiguity By B. DOUGLAS BERNHEIM AND MICHAEL D. WHINSTON* Why are observed contracts so often incomplete in the sense that they leave spa breaks by the sea uk