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Incomplete Contracts and Production Inefficiency in a Class Economy

Author

Listed:
  • Kazuhiko Mikami

    (School of Economics, Kwansei Gakuin University)

Abstract

This paper examines whether production efficiency is attained in a capitalistic class economy where complete contracts are not available. It is shown that such an economy often fails to achieve production efficiency.

Suggested Citation

  • Kazuhiko Mikami, 1997. "Incomplete Contracts and Production Inefficiency in a Class Economy," Discussion Paper Series 16, School of Economics, Kwansei Gakuin University, revised Jun 1997.
    • Handle: RePEc:kgu:wpaper:16
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    File URL: http://192.218.163.163/RePEc/pdf/kgdp16.pdf
    File Function: First version, 1997
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    References listed on IDEAS

    as
    1. Hart, Oliver & Moore, John, 1990. "Property Rights and the Nature of the Firm," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1119-1158, December.
    2. Bowles, Samuel, 1985. "The Production Process in a Competitive Economy: Walrasian, Neo-Hobbesian, and Marxian Models," American Economic Review, American Economic Association, vol. 75(1), pages 16-36, March.
    3. Hart, Oliver D & Moore, John, 1988. "Incomplete Contracts and Renegotiation," Econometrica, Econometric Society, vol. 56(4), pages 755-785, July.
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    More about this item

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • P10 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - General

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