Contractual traps

Ying-Ju Chen, Xiao-Qiang Zhao
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引用次数: 5

Abstract

In numerous economic scenarios, contracting parties may not have a clear picture of all the relevant aspects. While confronted with these unawareness issues, the strategic decisions of the contracting parties critically depend on their sophistication. A contracting party may be unaware of what she is entitled to determine. Therefore, she can only infer some missing pieces via the contract offered by other parties and determine whether to accept the contract based on her own evaluation of how reasonable the contract is. Further, a contracting party may actively gather information and collect evidence about all possible contingencies to avoid to be trapped into the contractual agreement. In this paper, we propose a general framework to investigate these strategic interactions with unawareness, reasoning, and cognition. We build our conceptual framework upon the classical principal-agent relationship and compare the equilibrium behaviors under various degrees of the unaware agent's sophistication. Several implications regarding optimal contract design, possible exploitation, and cognitive thinking are also presented.
合同陷阱
在许多经济情景中,缔约方可能对所有有关方面都没有清晰的认识。在面对这些不为人知的问题时,缔约各方的战略决策在很大程度上取决于它们的成熟程度。缔约方可能不知道她有权决定什么。因此,她只能通过他人提供的合同来推断出一些缺失的部分,并根据自己对合同合理程度的评估来决定是否接受合同。此外,缔约方可以积极收集有关所有可能的意外事件的信息和证据,以避免陷入合同协议。在本文中,我们提出了一个总体框架来研究这些与无意识、推理和认知的战略相互作用。我们在经典委托代理关系的基础上建立了我们的概念框架,并比较了不同程度的不知情代理复杂程度下的均衡行为。本文还提出了关于最优契约设计、可能的剥削和认知思维的几个含义。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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