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Dynamic Contract Breach - Fan Zhang,U. S. Department of Justice Antitrust Di

Anglų
2013-06-01
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This paper studies the design of optimal, privately-stipulated damages when breach of contract is possible at more than one point in time. It offers an intuitive explanation for why cancellation fees for some services (e.g., hotel reservations) increase as the time for performance approaches. If the seller makes investments over time to improve her value from trade, she will protect the value of her investm ... Visas aprašymas

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This paper studies the design of optimal, privately-stipulated damages when breach of contract is possible at more than one point in time. It offers an intuitive explanation for why cancellation fees for some services (e.g., hotel reservations) increase as the time for performance approaches. If the seller makes investments over time to improve her value from trade, she will protect the value of her investments by demanding a higher compensation when the buyer breaches their contract at a time closer to when contract performance is due.

Daugiau informacijos

Autorius Fan Zhang, U. S. Department of Justice Antitrust Di
Leidėjas BiblioLife
Išleidimo metai 2013
Viršelio tipas Minkšti viršeliai
EAN 9781289060985
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20,38 € 27,18 €