This study explores risk allocation in public-private partnerships for geothermal energy projects in Indonesia. We … develop an evidence-based framework founded on principal-agency theorising that suggests an optimal allocation of risk between … the parties in these arrangements. A Delphi survey suggested the risk bearing levels for the Indonesian government range …

The large majority of risk-sharing transactions involve few agents, each of whom can heavily influence the structure … problems have unique solutions. The risk-sharing Nash equilibrium admits a finite-dimensional characterisation and it is proved … future random outcomes different than their actual probability assessments, and the risk-sharing securities are endogenously …