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 …

We analyze noncontractible investments in a model with shading. A seller can make an investment that affects a buyer …

investment incentives. Our model nests standard property-rights and hold-up models as special cases. We admit general message … contracts. First, we contribute to the foundation of the property-rights theory by characterizing under which circumstances its … model has implications for future empirical test of the property-rights theory …

We study how investors' preferences for robustness influence corporate investment, financing, and compensation … ambiguity aversion lowers Tobin's q; the average investment, and investment volatility. The entrepreneur values the project at …

Breach remedies serve an important role in protecting relationship-specific investments. Theory predicts that some … common remedies protect too well and induce over investment, either though complete insurance against potential separation or … the possibility that breach is prevented by increasing the damage payment due through the investment made. In this article …