‘Optimally Vague’ contracts and their benefits to society

Imagine that you’re just about to sign an important contract – would you prefer it to have been precisely drafted, or would you be happy for it to be “optimally vague” ? Authors Nicola Gennaioli (Bocconi University and IGIER) and Giacomo A. M. Ponzetto (CREI, Pompeu Fabra University, IPEG and Barcelona GSE) suggest not only […]