Firms, Contracts, and Financial Structure Quotes

“Maybe we’ll evolve to a point where fear as an experience is no longer instinctual, but rather an emotion we use to enrich our understanding of why our human ancestors killed each other when they could have loved each other. One day we’ll be holding hands instead of grudges; we’ll eliminate our territorial circuits and know what love is. One day we’ll be holding hands instead of M-16s.”
― Oliver Hart, Firms, Contracts, and Financial Structure

“why contractual incompleteness matters. The reason is that the renegotiation process imposes several costs. Some of these are ex post costs, incurred at the renegotiation stage itself, and others are ex ante costs, incurred in anticipation of renegotiation.”
― Oliver Hart, Firms, Contracts, and Financial Structure