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In our hypothetical ideal world, contractual norm completeness guaranteed that every contractual term was either compatible or incompatible with at least one value optimal norm.Buyers will prefer to buy from the rest, the norm-compatible sellers.We will assume very ...
The argument is the same one we made about the best practices software norm in Chapter 7.This means the result will be the opposite of what we want: not “buyers demand normcompatible terms” but rather “buyers do not demand norm-compatible terms.Professional buyers purchasing for businesses and organizations read to the extent that what they buy depends on contractual terms as well as on price and quality....
Buyers When we discussed ideal markets, the perfect information assumption guaranteed that every buyer could spot the incompatible terms in any and every contract.Professional buyers purchasing for businesses and organizations read to the extent that what they buy depends on contractual terms as well as on price and quality.But we don’t really need buyers to know perfectly which sellers offer norm-compatible terms....
Buyers When we discussed ideal markets, the perfect information assumption guaranteed that every buyer could spot the incompatible terms in any and every contract.If United Airlines offers air travel on terms incompatible with relevant norms (excessive charges for baggage, for example), Southwest Airlines may call this to buyers’ attention in their advertisements.Real Markets: How the Coordination Norm Arises Real markets only approximate our ideal conditions....
But we don’t really need buyers to know perfectly which sellers offer norm-compatible terms.This means the result will be the opposite of what we want: not “buyers demand normcompatible terms” but rather “buyers do not demand norm-compatible terms.In ideal markets, perfect information entailed that buyers knew which sellers offered compatible terms....
