Muehlheusser, Gerd - In: Journal of Institutional and Theoretical Economics (JITE) 163 (2007) 4, pp. 531-551
This paper analyzes the role of damage clauses in labor contracts, using a model in which a worker may want to terminate his current employment relationship and work for another firm. It is shown that the initial parties to a contract have an incentive to stipulate excessive damage clauses,...
