Recent developments in modeling unforeseen contingencies

Recent developments in modeling unforeseen contingencies

http://dx.doi.org/10.1016/S0014-2921(97)00114-1

Eddie Dekel, Barton L. Lipman, * and Aldo Rustichini,
a Economics Department, Northwestern University, Evanston, IL, USA
b Department of Economics, Social Science Centre, University of Western Ontario, London, Ont., N6A 5C2, Canada
c CORE, Louvain-La-Neuve, Belgium

Available online 19 January 1999.



Abstract
We survey recent models of unforeseen contingencies, discussing both epistemic and decision–theoretic approaches. We also briefly comment on the hurdles which remain for applying these models to contract theory.

Author Keywords: Unforeseen contingencies; Incomplete contracts

JEL classification codes: D81; D84

*Corresponding author. E-mail: blipman@julian.uwo.ca.

1Also at: CentER, Tilburg, The Netherlands.


European Economic Review
Volume 42, Issues 3-5, 31 May 1998, Pages 523-542