kaal:claim:kaal-2014-dynamicregulationviagove-029
Because a governmental contract is executed only after wrongdoing has been identified and assessed, the parties can contract for governance improvements with relative precision, which reduces the amount of institution specific experimentation required and its transaction costs.
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The assessment of corporate wrongdoing enables the parties to contract for governance im- provements with relative precision, allowing for less overall institution- specific experimentation and lower associated transaction costs.
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mechanismsupport: arguedeconomics
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