This study analyzed the principal-agent problem, in which the agent performs risk management tasks, and considered the … cost minimization problem of the principal, the objective of which is to design the cheapest contract inducing a target … effort. Our results confirm that a one-step bonus contract should be used, which means that a bonus contract is most …

Selecting the type of contract is an important aspect of governing interfirm transactions. The purpose of this article … is to examine the use of fixed-fee and time-and-materials (Tamp;M, or cost-plus) contracts and a hybrid contract that … consists of a Tamp;M contract with a cap. In addition to uncertainty and measurement factors, we also address a relatively …

profits. Furthermore, we investigate whether the two-part tariff is more effective compared with the wholesale price contract …

. In our view, traditional contracting techniques and traditional contract law address problems of risk. Braiding, or …Contract today increasingly links entrepreneurial innovations to the efforts and finance necessary to transform ideas … into value. In this Chapter, we describe the match between a form of contract that "braids" formal and informal contractual …

the principal and the agent are prudent (or downside risk averse). We show that optimal incentive pay should then be … `approximately concave' in performance, the approximation being closer the more downside risk averse the principal is compared to the … investigate the tradeoff between downside risk sharing and incentives …

This paper examines the Risk Management and Contract Design aspects of Public Private Partnerships. Part I begins with …, and some common mistakes. All risk management is manifested in the contract specifications. Part IV therefore focuses on … question, it identifies risk allocation and risk sharing as a central feature of PPPs today. Part II attempts to see when PPPs …