RelImprecision | Behaviour, perceptions, cognition, knowledge, organizations. Relational contracting approach to design of contractual forms when information is imprecise.

Summary
This project aims to provide the first analysis of relational contracting when the parties do not (initially) have precise information about the various courses of actions, and experiment them through the relationship. Examples include innovative activeties such as book publishing, research and development, technology adoption in developing countries, and drafting rules and laws in bureaucratic setting.
We introduce in relational contracts framework imprecision about the prospects of actions. Imprecision is formulated as ‘ambiguity’ by building on recent developments in decision theoretic literature. The aim in this project is to explore how the interaction of imprecise perceptions about the consequences of actions and moral hazard introduce new conceptual and analytical issues and how such an interaction plays a role in shaping dynamic relational incentives.
An understanding of these questions is relevant not only for motivating research and development, but also for diverse applications including technology adoption in developing countries, book publishing, as well as drafting new policies and rules of law. In publishing an author will typically have some imprecise information about the new project as previous experience is only partly relevant for new venture, and possibly better information in writing the book than the publisher. Technology adoption in developing countries is similarly dynamic process of experimentation and learning via relationship. Local entrepreneurs have better yet imprecise ideas about new technologies and new practices than development agencies. In policy making and drafting new rules of laws, uncertainty about various acts can shape the optimal degree of delegation implied by the moral hazard between politicians and between bureaucrats so that evidence-based policy-making can be achieved in a healthy democracy.
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More information & hyperlinks
Web resources: https://cordis.europa.eu/project/id/896463
Start date: 01-10-2020
End date: 31-12-2022
Total budget - Public funding: 163 099,20 Euro - 163 099,00 Euro
Cordis data

Original description

This project aims to provide the first analysis of relational contracting when the parties do not (initially) have precise information about the various courses of actions, and experiment them through the relationship. Examples include innovative activeties such as book publishing, research and development, technology adoption in developing countries, and drafting rules and laws in bureaucratic setting.
We introduce in relational contracts framework imprecision about the prospects of actions. Imprecision is formulated as ‘ambiguity’ by building on recent developments in decision theoretic literature. The aim in this project is to explore how the interaction of imprecise perceptions about the consequences of actions and moral hazard introduce new conceptual and analytical issues and how such an interaction plays a role in shaping dynamic relational incentives.
An understanding of these questions is relevant not only for motivating research and development, but also for diverse applications including technology adoption in developing countries, book publishing, as well as drafting new policies and rules of law. In publishing an author will typically have some imprecise information about the new project as previous experience is only partly relevant for new venture, and possibly better information in writing the book than the publisher. Technology adoption in developing countries is similarly dynamic process of experimentation and learning via relationship. Local entrepreneurs have better yet imprecise ideas about new technologies and new practices than development agencies. In policy making and drafting new rules of laws, uncertainty about various acts can shape the optimal degree of delegation implied by the moral hazard between politicians and between bureaucrats so that evidence-based policy-making can be achieved in a healthy democracy.

Status

CLOSED

Call topic

MSCA-IF-2019

Update Date

28-04-2024
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Horizon 2020
H2020-EU.1. EXCELLENT SCIENCE
H2020-EU.1.3. EXCELLENT SCIENCE - Marie Skłodowska-Curie Actions (MSCA)
H2020-EU.1.3.2. Nurturing excellence by means of cross-border and cross-sector mobility
H2020-MSCA-IF-2019
MSCA-IF-2019