How does opportunistic behavior affect a contract?
Opportunism creates a possibility that a party can gain by disregarding or breaking the rules in a contract. It allows a party to profit from actions it knows the contract might not allow, hoping the other party will drop the dispute or pay up. If people never behave opportunistically, a trader's word is as good as his bond. People can concentrate on maximizing the value their transaction creates and bargaining to mutually beneficial outcomes where the contract is incomplete or unclear.
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The endogenous variable in the aggregate supply curve is ________
A) output B) the real interest rate C) inflation D) planned expenditure E) none of the above
As a person's wealth increases, which of the following portfolio holdings is likely to increase the least?
A) checking account B) stocks C) money market fund D) bonds
How much of U.S. garbage is disposed of in landfills?
a. 25 percent b. 40 percent c. 60 percent d. 70 percent e. 100 percent
Why do we use two supply curves in the aggregate goods and services market? What is the difference between them, and why do they have different slopes?