In a laboratory experiment, we measure subjects' willingness to pay for a transparently useless decision right …

predicts that some commonly used types of breach remedies may protect too well, in the sense that they induce over-investment … provide, and the potential possibility to prevent breach by increasing the damage payment due through the investment made. The … paper we report on an experiment designed to address this issue. Three different remedies are studied: (i) liquidated …

about an experiment designed to test these predictions. We find that investment levels do not increase with the value of the …According to the outside option principle the holdup problem can be lifted by structuring the post-investment … non-investor's outside option. When the outside option is binding investment levels fall short of the socially efficient …

This paper reports the results from a laboratory experiment investigating a manager's decision whether or not to …

these two types of contract represents the trade-off between efficient investment and efficient job assignment. This paper … reports about an experiment designed to study this trade-off in practice. Results show some remarkable differences with …

This paper reports the results of an individual real effort laboratory experiment where subjects are paid for measured …