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OPTIMAL CONTRACTS WITH ENFORCEMENT RISK

I build a model where potentially biased judges verify complex states by interpreting an imperfect signal whose noise captures factual ambiguities. In a sales and a financial transaction I show that judicial biases amplify and distort factual ambiguities, creating enforcement risk. To insure... Full description

1st Person: Gennaioli, Nicola verfasserin
Source: in Journal of the European Economic Association Vol. 11, No. 1 (2013), p. 59-82
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Type of Publication: Article
Language: English
Published: 2013
Online: Volltext
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