{"product_id":"more-is-less-book-maija-halonen-akatwijuka-9781009396073","title":"More is Less","description":"Why are contracts incomplete? Transaction costs and bounded rationality cannot be a total explanation since states of the world are often describable, foreseeable, and yet are not mentioned in a contract. Asymmetric information theories also have limitations. We offer an explanation based on 'contracts as reference points'. Including a contingency of the form, 'The buyer will require a good in event E', has a benefit and a cost. The benefit is that if E occurs there is less to argue about; the cost is that the additional reference point provided by the outcome in E can hinder (re)negotiation in states outside E. We show that if parties agree about a reasonable division of surplus, an incomplete contract is strictly superior to a contingent contract. If parties have different views about the division of surplus, an incomplete contract can be superior if including a contingency would lead to divergent reference points.","brand":"WoB","offers":[{"title":"GB \/ NEW \/ GARDNERS","offer_id":49748550091025,"sku":"NGR9781009396073","price":0.0,"currency_code":"EUR","in_stock":false},{"title":"US \/ NEW \/ INGRAM","offer_id":51012456743185,"sku":"NIN9781009396073","price":0.0,"currency_code":"EUR","in_stock":false},{"title":"GB \/ NEW \/ INGRAM","offer_id":52487941423377,"sku":"NLS9781009396073","price":0.0,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0784\/4072\/6801\/files\/1009396072.jpg?v=1750948819","url":"https:\/\/www.worldofbooks.com\/de-de\/products\/more-is-less-buch-maija-halonen-akatwijuka-9781009396073","provider":"World of Books ","version":"1.0","type":"link"}