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Wednesday, June 06, 2018

Complexity of Contracts

This came up in a conversation about the complexity of agreements,  and in particular how these might be embedded in smart contracts, and how disclosure terms might be part of that.  Has a link to full doc on the study.  What is the measure of complexity?

Complex Disclosure  in HBS Working Knowledge
by Ginger Zhe Jin, Michael Luca, and Daniel Martin

OVERVIEW — This study shows that companies looking to hide unfavorable information might strategically be making contract terms unnecessarily complex, harming consumers and undermining the effectiveness of disclosure. These results highlight a role for regulation that would encourage simpler forms of disclosure. ... " 

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