Ambiguity aversion and incompleteness of contractual form
Article Abstract:
Research was conducted to gain an insight on how the concept of ambiguity aversion can provide a precise explanation of the link between vertical integration and uncertainty. Transactions costs paradigm has been the empirical cornerstone for the theory of incomplete contracts while ambiguity aversion has been considered as merely supplementary to transactions costs. Results, however, prove that ambiguity aversion could explain why detailed, long-term contingent contracts thrive in a relatively stable world which transactions costs could not do.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Localization economies, vertical organization, and trade
Article Abstract:
A model of regional production networks has been applied to the Mexican apparel industry. Mexico offers a good venue to investigate the impact of trade on industry location due to its involvement with the North American Free Trade Agreement. Results show that high-skill apparel jobs are concentrated in Mexico City, while assemblywork is performed in outlying regions.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Contribution, attribution and the assignment of intellectual property rights in economics
- Abstracts: Creating an industrial property database (with GIS capabilities) for an economic development organization
- Abstracts: Public education and income distribution: a dynamic quantitative evaluation of education-finance reform. Michigan's recent school finance reforms: a preliminary report
- Abstracts: Public and private investment: are there causal linkages? Critical debt and debt dynamics
- Abstracts: Help wanted: hiring a CEO for an economic development organization. A comparison of rural and urban economic development programs in Pennsylvania