Foundations of Incomplete Contracts
Working Paper 6726
DOI 10.3386/w6726
Issue Date
In the last few years a new area has emerged in economic theory, which goes under the heading of However, almost since its inception, the theory has been under attack for its lack of rigorous foundations. In this paper, we evaluate some of the criticisms that have been made of the theory, in particular, those in Maskin and Tirole (1998a). In doing so, we develop a model that provides a rigorous foundation for the idea that contracts are incomplete.
Published Versions
Review of Economic Studies, Vol. 66, no. 1 (1999): 115-138. citation courtesy of