Ambiguity Aversion and Cost-Plus Procurement Contracts.
This paper presents a positive theory about the contractual form of procurement contracts under cost uncertainty. While the cost of manufacture is uncertain it can be controlled, to an extent depending on the effort exerted by the agent. The effort exerted by the agent is not contractible but causes...
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| Format: | Working paper |
| Language: | English |
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Department of Economics (University of Oxford)
2003
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