Article: Majoritarian vs. minoritarian defaults.(response to article by Barry E. Alder in this issue, p. 1547)

Recent theoretical analysis of contract default roles has devoted significant attention to the use of penalty default roles as a way to induce a contractor to reveal private information. Penalty default roles demonstrate how efficient roles cannot be derived by simply asking what most parties would have contracted for had they written a complete contract. Such "majoritarian" default roles derive from an implicit assumption about the reason why a particular contract is incomplete. A fuller efficiency analysis tries to understand the reasons why contracts are incomplete and how different default roles affect the efficiency of the contracting process and the contracts ...

Related newspaper, magazine, and journal articles:

Newsweek Harper's Magazine The Washington Post Chicago Tribune Crain's Chicago Business PRNewswire Pediatric News The Nation Advertising Age The Economist (US) A FREE trial gives you access to over 80 million articles! Access over 6,500 publications with a FREE trial!