Costly state verification
id:
costly-state-verification-310-9847567
title:
Costly state verification
text:
Costly State Verification (CSV) is an approach in contract theory that considers a contract design problem in which verification of enterprise performance is costly and a lender has to pay a monitoring cost. A central result of CSV approach is that it is generally optimal to commit to a partial, state-contingent disclosure rule. Robert M. Townsend (1979) has shown that under few strong assumptions the optimal financing mechanism is a standard debt contract for which there is no disclosure of the
brand slug:
wiki
category slug:
encyclopedia
description:
Theory of contract design in which verification or disclosure of enterprise performance is costly
original url:
https://en.wikipedia.org/wiki/Costly_state_verification
date created:
date modified:
2022-12-29T04:44:56Z
main entity:
{"identifier":"Q5175153","url":"https://www.wikidata.org/entity/Q5175153"}
image:
fields total:
13
integrity:
14