ESRC Centre for Economic Learning and Social Evolution
Abstract
A simple model is presented, in which contradictory instructions
are viewed as a type of contract incompleteness. The model provides
a complexity-based rationale for contradictory instructions. If there
are complexity bounds on the contract, there may be an incentive to
introduce contradictions, leaving for another agent the task of interpreting them. The optimal amount of contradictions depends on the
complexity bound, the conflict of interests with the interpreter, and
the institutional constraints on his interpretations. In particular, a
higher complexity bound may result in a larger amount of contradictions
