Complete Contracts: Roomate Agreement Edition
15 November 2011 at 12:12 pm Peter G. Klein 4 comments
| Peter Klein |
Contractual completeness is a core issue in organizational economics. A colleague helpfully suggested this illustration of a nearly complete contract. Note the deliberate omission of language dealing with an extreme low-probability event (time for Nicolai and Scott to resume their debate over bounded rationality?).
Entry filed under: - Klein -, New Institutional Economics, Strategic Management, Theory of the Firm.
Organizations and Markets 
1.
Scott Masten | 15 November 2011 at 12:32 pm
I’m game if Nicolai is!
2. Rafe’s Roundup Boston edition at Catallaxy Files | 15 November 2011 at 10:26 pm
[…] Klein has a post on contractual completion, with a nice bit of Youtube to illustrate the complications that can […]
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Michael Marotta | 17 November 2011 at 9:00 pm
Just that Big Bang Theory ran and still runs and garners awards offers opportunity for sociologists. Some on the fan sites worry that it slid from being a comedy for nerds, to being a comedy about nerds, to just being another sitcom sandbagging the ratings with bathroom jokes. I see its success in the fact that 28% of working Americans have bachelor’s degrees. This show runs on CBS in prime time, not midnights on the Syfy Channel. Even after it goes off the air – as all shows must – it will remain a classic. What will be interesting will be to consider what life will be like in the future when this show is outdated.
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Juan M | 20 November 2011 at 12:05 pm
Did you watched the chapter where Leonard explained Penny the negociation process?