Miettinen, Topi - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2008
In line with the widely applied principle of just deserts, we assume that the severityof the penalty on a contract offender increases in the harm on the other. Whenthis principle holds, the influence of the efficiency of the agreement on the incentivesto abide by it crucially depends on whether...