. By exploiting the real-option approach, we examine how the inability to force sellers to meet the contract time …Time overruns are common in public works and are not confined to inherently complex tasks. One explanation advanced in … when the contract does not provide for any compensation for late-delivery. -- Public Procurement ; Fixed-Price Contracts …

. By exploiting the real-option approach, we examine how the inability to force sellers to meet the contract time …Time overruns are common in public works and are not confined to inherently complex tasks. One explanation advanced in … when the contract does not provide for any compensation for late-delivery …

Although a punishment can be applied only once, the threat to punish can be repeated several times. This is possible … because, when parties comply, the punishment is not applied and can thus be used to support a new threat. We refer to this … every time a party complies; hence, at each round a new reward is needed. We show that the multiplication effect of sticks …