term profits by putting the firm at risk of a low probability "disaster." To avoid such risk-taking, investors must cede … performance to prevent shirking, poorly performing managers will take on disaster risk even under an optimal contract. This risk … take on disaster risk. When effort costs are convex, reductions in effort incentives is used to limit risk-taking, with a …

the uncertainty about the risks in question, and involve three trade-offs: innovation vs. risk avoidance; liability vs …. collective risk sharing; and equity vs. practicable claims settlement. We study two highly instructive examples: nuclear …

strategies like dual sourcing mitigate the buyer's operational risk, but often do so at the expense of increasing its reputation … risk and sourcing costs. In this paper, we propose a risk-sharing contract for managing the buyer's reputation concerns. We … risk but this has to be balanced against an increase in the operational risk. Risk-sharing also reduces sourcing costs …

We consider technology choices between green and brown technologies by firms. We use insights from complexity theory …

from complexity theory that takes account of true uncertainty and increasing returns to technology adoption. We examine …