Damages for Breach of Contract: Should the Government Get Special Treatment?
AbstractContracts that involve the government differ from contracts between two private parties in that the identity of one of the parties, the government, is subject to change. Given that the incumbent government knows that it might not be in power when the contract is completed, it may have an incentive to structure the contract to make it more difficult for a new government to renegotiate it. I show that traditional damage measures used in contracts between two private parties exacerbate this problem. The reliance damage measure induces the incumbent government to enlarge projects beyond the socially optimal level when it fears that a new government will want to cut it back. Expectation damages suffer from the same defect, though to a lesser extent. Copyright 2001 by Oxford University Press.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Oxford University Press in its journal Journal of Law, Economics and Organization.
Volume (Year): 17 (2001)
Issue (Month): 1 (April)
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Web page: http://jleo.oupjournals.org/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Louis Kaplow, 2003. "Transition Policy: A Conceptual Framework," NBER Working Papers 9596, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.