Che, Yeon-Koo; Chung, Tai-Yeong - In: RAND Journal of Economics 30 (1999) 1, pp. 84-105
We study alternative breach remedies in the presence of specific investments that generate a direct benefit to the investor's trading partner (referred to as "cooperative investments."). We find that (i) expectation damages perform very poorly, inducing no cooperative investment; (ii) privately...