Huck, Steffen; Konrad, Kai A. - In: Journal of Institutional and Theoretical Economics (JITE) 161 (2005) 4, pp. 575-575
Consider a committee that in the past has made a promise not to confiscate the profits from an investor. After the investment has taken place, there is a material benefit if the committee decides to default on the earlier promise. But in some situations there are also some small moral costs for...