Optimal Contract

Financial Definition of Optimal Contract

Meaning of Optimal Contract

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

Related Entries of Optimal Contract in the Encyclopedia of Law Project

Browse or run a search for Optimal Contract in the American Encyclopedia of Law, the Asian Encyclopedia of Law, the European Encyclopedia of Law, the UK Encyclopedia of Law or the Latin American and Spanish Encyclopedia of Law.

Optimal Contract in Historical Law

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Legal Abbreviations and Acronyms

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