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A second strand of the literature empirically examines the reasons for ex post inefficiency.
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In our set-up, no other contract but that without an asset allocation clause can credibly create an ex-post inefficiency.
Firms create this ex-post inefficiency in order to increase the levels of non-contractible investments, i.e. increase the ex-ante efficiency.
They also show that ex post efficient contracts may well be inefficient from an ex ante perspective.
Actually, competition between HMOs and nonintegrated health insurance companies generates two inefficiencies: a wholesale price above the marginal cost and transportation costs generated by ex post differentiation.
"The ex post is an illusion".
That would be ex post facto with a vengeance.
The ex post facto clause bars retroactive punishment.
Unfortunately potential output is not observable, not even ex post".
The days of ex post facto price justification are over.
Infrastructure requires evaluation ex ante and ex post.
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