The parties to a contract will choose to acquire possibly duplicative information if they believe that the increase in economic value being created will exceed the cost of discovering the information.

Question

Quizplus · Accepted Answer

It is true that parties will choose to acquire possibly duplicative information if they believe the increase in economic value created will exceed the cost of discovering the information. This is because having more information can reduce uncertainty and increase the confidence of the parties in the contract, leading to more efficient outcomes.

The Parties to a Contract Will Choose to Acquire Possibly