Reputation Mechanisms and Electronic Markets: Economic Issues and Proposals for Public Procurement
نویسندگان
چکیده
A common problem in economic transactions is the presence of relevant aspects of the exchange that cannot be fully specified in the contract, for example, because they are observable but not verifiable by a third party (court). The existence of non-verifiable aspects (some qualitative features of the exchanged goods and services that cannot be verified in court), contractual complexities, lack of information and costs due to exhaustive specifications lead parties to draw “incomplete contracts”. Contract incompleteness opens the way to two well-known informational problems: ‘adverse selection’ and ‘moral hazard.’
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