Huck, Steffen; Konrad, Kai A. - Abteilung "Marktprozesse und Steuerung", … - 2003
Consider a committee that in the past has made a promise not to confiscate the profits from a foreign investor. After the investment has taken place, there is a material benefit if the committee decides to default on the earlier promise. But there are also some small moral costs for those who...