A matter of interpretation: Ambiguous contracts and liquidated damages

• 成果类型: Article
• 署名作者: Grant, Simon; Kline, J. Jude; Quiggin, John
• 署名单位: University of Queensland
• 刊物名称: GAMES AND ECONOMIC BEHAVIOR
• ISSN/ISSBN: 0899-8256
• DOI: 10.1016/j.geb.2014.01.019
• 发表日期: 2014
• 页码: 180-187
• 关键词: Ambiguity; bounded rationality; Expected uncertain utility; incomplete contracts; Liquidated damages

摘要

We consider the optimality of liquidated damages contracts in a setting of contractual ambiguity and potential for disputes. We show that when parties are ambiguity averse enough, they will optimally choose liquidated damages contracts and sacrifice risk sharing opportunities. (C) 2014 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/3.0/).