and incentives, can induce firms to behave strategically: they will offer very low bids to be awarded the contract … the specification of the type of contract to be awarded. Less attention has been paid to the incompleteness of the … contract; this issue is relevant in the public work sector because it offers room for the contract renegotiation and, therefore …

The majority of American jurisdictions do not allow punitive damages for breach of contract unless the breach … constitutes an independent tort. Increasingly, courts and commentators have relied on the theory of “efficient breach” to explain … a different rule — one allowing punitive damages for any willful breach of contract.Willful breaches fall into two …

Incentives -- 3. The Optimal Contract -- 4. Competition in Bidding -- 5. Simulations with Incentive Contracts -- 6. United States … incentive contract shares cost overruns and cost underruns between the government and the contractor according to a … predetermined ratio. An incentive contract stimulates competition among the firms bidding for the contract and shares the project …

evidence on punishment preferences, in which subjects reveal a heterogeneous preference for punishing wrongdoers, our model … identifies circumstances in which “punitive” individuals (with stronger-than-average punishment preferences) will self …-select into law enforcement jobs that offer the opportunity to punish (or facilitate the punishment of) wrongdoers. Such “punitive …

monitors'). We review the literature on the relative merits of punishment and rewards when the distribution of incentive power … evidence showing how concentrating reward/punishment power in one group member affects cooperation. …

; Penalty Fee ; Investment Timing Flexibility ; Contract Incompleteness ; Enforceability of Rules …