such practices as termination for convenience, investment subsidies, and cost-based reimbursement, often employed in …

, inducing no cooperative investment; (ii) privately stipulated liquidated damages can achieve a better, albeit inefficient …

investment by a buyer and a seller. Contracts may specify a required quality level and an upper bound to the cost of production …

investment incentives. Our model nests standard property-rights and hold-up models as special cases. We admit general message …

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 … damages, (ii) expectation damages and (iii) reliance damages. In line with theoretical predictions we find that over-investment …