Incomplete Contracts: An Empirical Approach
The strategic ambiguity hypothesis posits that when some aspects of performance are observable but not verifiable, the optimal contract is deliberately incomplete. I test this result for the first time. Because a direct test is infeasible, I derive an equivalent result: incompleteness is optimal whe...
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| Format: | Article |
| Language: | English |
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Oxford University Press
2018
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| Online Access: | View Fulltext in Publisher |