Double Moral Hazard in Buy-Back Oil Contracts
This research is modeling third generation of buy back oil contracts by considering a double moral hazard and employing Cubb-Douglas production function. The result shows that buy-back oil contracts are not in the first best or second best in double moral situation. Ove to this type of contracts is...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
| Published: |
Allameh Tabataba'i University Press
2017-03-01
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| Series: | Pizhūhishnāmah-i Iqtiṣād-i Inirzhī-i Īrān |
| Subjects: | |
| Online Access: | https://jiee.atu.ac.ir/article_7997_5e3cced387c1b4283853b8a774f6cd15.pdf |
| _version_ | 1797369276447850496 |
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| author | Mohammadmahdi Askari Hamidreza Maboudi |
| author_facet | Mohammadmahdi Askari Hamidreza Maboudi |
| author_sort | Mohammadmahdi Askari |
| collection | DOAJ |
| description | This research is modeling third generation of buy back oil contracts by considering a double moral hazard and employing Cubb-Douglas production function. The result shows that buy-back oil contracts are not in the first best or second best in double moral situation. Ove to this type of contracts is a cost plus contract and the payoff of the contractor is fixed, in double moral hazard the production is affected by the level of action of both parties, for nearing to the optimum point. Hence, the contract should be the long-term and the pay off of the project should be shared between parties. |
| first_indexed | 2024-03-08T17:44:22Z |
| format | Article |
| id | doaj.art-e7c9ac3e3c7b49edbeff4c3c8a1d5ec8 |
| institution | Directory Open Access Journal |
| issn | 2423-5954 2476-6437 |
| language | fas |
| last_indexed | 2024-03-08T17:44:22Z |
| publishDate | 2017-03-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | Pizhūhishnāmah-i Iqtiṣād-i Inirzhī-i Īrān |
| spelling | doaj.art-e7c9ac3e3c7b49edbeff4c3c8a1d5ec82024-01-02T10:48:08ZfasAllameh Tabataba'i University PressPizhūhishnāmah-i Iqtiṣād-i Inirzhī-i Īrān2423-59542476-64372017-03-0162210713210.22054/jiee.2017.79977997Double Moral Hazard in Buy-Back Oil ContractsMohammadmahdi Askari0Hamidreza Maboudi1Faculty of Islamic Studies and Economics, Imam Sadiq University, Tehran, IranFaculty of Economics and Islamic Study, Imam Sadiq UniversityThis research is modeling third generation of buy back oil contracts by considering a double moral hazard and employing Cubb-Douglas production function. The result shows that buy-back oil contracts are not in the first best or second best in double moral situation. Ove to this type of contracts is a cost plus contract and the payoff of the contractor is fixed, in double moral hazard the production is affected by the level of action of both parties, for nearing to the optimum point. Hence, the contract should be the long-term and the pay off of the project should be shared between parties.https://jiee.atu.ac.ir/article_7997_5e3cced387c1b4283853b8a774f6cd15.pdfbuy-back oil contractsdouble moral hazardcubb-douglas function |
| spellingShingle | Mohammadmahdi Askari Hamidreza Maboudi Double Moral Hazard in Buy-Back Oil Contracts Pizhūhishnāmah-i Iqtiṣād-i Inirzhī-i Īrān buy-back oil contracts double moral hazard cubb-douglas function |
| title | Double Moral Hazard in Buy-Back Oil Contracts |
| title_full | Double Moral Hazard in Buy-Back Oil Contracts |
| title_fullStr | Double Moral Hazard in Buy-Back Oil Contracts |
| title_full_unstemmed | Double Moral Hazard in Buy-Back Oil Contracts |
| title_short | Double Moral Hazard in Buy-Back Oil Contracts |
| title_sort | double moral hazard in buy back oil contracts |
| topic | buy-back oil contracts double moral hazard cubb-douglas function |
| url | https://jiee.atu.ac.ir/article_7997_5e3cced387c1b4283853b8a774f6cd15.pdf |
| work_keys_str_mv | AT mohammadmahdiaskari doublemoralhazardinbuybackoilcontracts AT hamidrezamaboudi doublemoralhazardinbuybackoilcontracts |