Optimal contract


 

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Optimal contract

The contract that balances the three types of agency costs (contracting, monitoring, and misbehavior) against one another to minimize the total cost.



Optimal contract

Similar Matches

Contract curve

Contract curve

1. In an Edgeworth Box for consumption, the allocations of 2 goods to 2 consumer that are Pareto efficient. Starting with an allocation that may not be on the contract curve, it shows the ways that the consumers might contract to exchange the goods with each other. 2. In an Edgeworth Box for production, this name is sometimes also used for the efficiency locus.


Cash settlement contracts

Cash settlement contracts

Futures contracts such as stock index futures that settle for cash and do not involve delivery of the underlying.


Installment Contract

Installment Contract

A method of purchasing by installment (usually monthly) payments. When referring to real property, it is usually called a land contract.


Sales Contract

Sales Contract

Contract between a seller and buyer for the sale of goods, services, or both.


Nexus (of contracts)

Nexus (of contracts)

A set or collection of something.


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