Affiliation:
1. Toulouse School of Economics, Manufacture des Tabacs, Aile Jean-Jacques Laffont, 21 allées de Brienne, 31000 Toulouse, France.
Abstract
Thinking about contingencies, designing covenants, and seeing through their implications is costly. Parties to a contract accordingly use heuristics and leave it incomplete. The paper develops a model of limited cognition and examines its consequences for contractual design. (JEL D23, D82, D86, L22)
Publisher
American Economic Association
Subject
Economics and Econometrics
Cited by
187 articles.
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