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《Journal of Dalian University of Technology(Social Sciences)》 2006-03
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Artificially-designed incentive contracts' incompletion and executing difficulty in organization

ZHANG Shu-min,WANG Xun(Department of Economics,Dongbei University of Finance and Economics,Dalian 116025,China)  
It is a great development that modern economics has transformed from conventional completive contract theory to incomplete contract theory.As a kind of contracts,due to the uncertainty of action-outcome relationship and quality confirmation,artificially-designed incentive contracts are incomplete.The incompletion of incentive contracts leads to the opportunistic behavior,extortion and asset specificity,judicial executing difficulty.We should focus our attention on these problems carefully when we design and execute incentive contracts in organization.
【CateGory Index】: F01
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