show that a revenue-maximizing government can optimally trade-off direct subsidies for capital investment against the right …

solution to this dynamic principal-agent problem involves a periodic two-part payment. The fixed part of the payment depends on …

. By exploiting the real-option approach, we examine how the inability to force sellers to meet the contract time … when the contract does not provide for any compensation for late-delivery. -- Public Procurement ; Fixed-Price Contracts …

therefore to a drop in the return to investment. -- Principal Agent ; Moral Hazard ; Hidden Action ; Incentives ; Survival …

investment and increase the government's expected payoff, even while taking into account the costs that the public sector will …

In a continuous-time setting, we study the design of a dynamic contract between a government and a private entity …

require long-term commitments. Landowners, however, can decide to prematurely terminate the contract when the opportunity cost … views non-enforcement of contract terms as a source of real-options, the paper offers the following contributions. First, it … play in avoiding such potential bias in contract allocation. …

suppliers, facing variable production costs, must simultaneously report the contract price and the cost level at which they …