Incompleteness of Employment Contracts
A key feature of employment contracts is their incompleteness, meaning they cannot specify every aspect of the exchange that matters to the employer or employee in a legally enforceable way. This incompleteness is evident in areas that are difficult to contract on, such as the precise level and quality of an employee's effort, or the full range of future conditions under which an employee might quit or the employer might end the employment.
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Ch.5 The rules of the game: Who gets what and why - The Economy 2.0 Microeconomics @ CORE Econ
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