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Disputes over penalties for breach of contract are often solved in court. A simple model shows how inefficient courts may induce public buyers to refrain from enforcing penalties for late delivery to avoid litigation, inducing sellers to delay. Using a large dataset on Italian public...
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choose and then design the contract to optimally balance the trade-off between incentives to limit the contractor's supply … cost and the flexibility to ex-post adaptation to potential unforeseen events.When important characteristics of the supply …
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competition in the tendering process and thereby the procurer's budget and the quality of supply. This paper focuses on the …
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