Legal conflicts between multinational firms and host governments are often decided by international arbitration panels … state of nature with certainty. I show that from a world welfare perspective there is no underregulation, only an …

requires the use of an appropriate incentive contract so as to realign his interests with those of the principal. The parties … of the optimal flexible contract both when the parties have sharp probabilistic beliefs over the possible events in which … risk aversion, the higher the agency costs for delegation and hence the less profitable is a flexible contract versus a …

the fairs. It finds that contract enforcement at the fairs did not take the form of private-order or corporative …

that hardly explains the many features of an insurance contract. We extend this setup to include the situation that the … costlessly observable, then it should be included in the contract to improve the risk sharing-incentive trade-off under moral … resulting incompleteness of the contract opens the door to controversies and disputes that may lead to judicial procedures. We …