Randomization in coalition contracts

B-Tier
Journal: Public Choice
Year: 1998
Volume: 94
Issue: 3
Pages: 341-353

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This article analyzes a much debated clause in the coalition contract between SPD and FDP in Rheinland-Pfalz. Two parties write a contract, based on which decisions under incomplete information have to be made at a later point in time. It is shown that a complex complete contract can achieve the first best outcome. However, a simple incomplete contract can implement the first best outcome only if use of seemingly inefficient randomization is made. Copyright Kluwer Academic Publishers 1998

Technical Details

RePEc Handle
repec:kap:pubcho:v:94:y:1998:i:3:p:341-353
Journal Field
Public
Author Count
1
Added to Database
2026-01-29