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Opportunism in LSLI Contracts: An Economic View

In: Large-Scale Land Investments in Least Developed Countries

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  • Luis Tomás Montilla Fernández

    (University of Hamburg)

Abstract

Following the analysis of legal mechanisms in IL to enforce the rights to food and property, and showing how IL fails to protect the rights of locals, this chapter will follow a social science approach to LSLIs. In order to do so, we will consider the effects of LSLIs as a result of opportunistic behaviour producing detrimental effects for third parties. We will apply NIE to analyse what gives rise to opportunism and how it can be tackled. After this brief overview we will introduce NIE and the concept of opportunism. We will suggest that opportunism has two sources, namely prohibitively high agency costs and incomplete contracts.

Suggested Citation

  • Luis Tomás Montilla Fernández, 2017. "Opportunism in LSLI Contracts: An Economic View," International Law and Economics, in: Large-Scale Land Investments in Least Developed Countries, chapter 0, pages 205-259, Springer.
  • Handle: RePEc:spr:intchp:978-3-319-65280-1_4
    DOI: 10.1007/978-3-319-65280-1_4
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