Efficient Supply Chain Contracting with Loss-averse Players in Presence of Multiple Plausible Breaches
The legal literature distinguishes between the liquidated damage and the penalty clauses in contracts, and holds that penalties designed for the prevention of breach are excessive compared to the liquidated damages. In an efficient supply chain contract, the penalty must satisfy the participation an...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Pompea College of Business
2022-11-01
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| Series: | American Business Review |
| Subjects: | |
| Online Access: | https://digitalcommons.newhaven.edu/americanbusinessreview/vol25/iss2/3/ |