Ambiguous contracts: a syntactic approach

We focus on syntactic aspects of di¤erential awareness that give rise to contractual disputes. Boundedly rational parties use a common language, but do not share a common understanding of the world, leading to ambiguity in both syntactic and semantic forms. In contractual relationships, ambiguity leads to disagreement and disputes. We show that the agents may prefer simpler less ambiguous contracts when facing potential disputes.


Issue Date:
Sep 20 2011
Publication Type:
Working or Discussion Paper
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/153052
PURL Identifier:
http://purl.umn.edu/153052
Total Pages:
18
JEL Codes:
D80; D82
Series Statement:
Risk and Uncertainty Program
R13_5




 Record created 2017-04-01, last modified 2019-08-29

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)