Theory predicts that default breach remedies are immaterial whenever contracting costs are negligible. Some experimental studies, however, suggest that in practice default rules do matter, as they may a¤ect parties' preferences over contract terms. This paper presents results from an experiment designed to address the importance of default breach remedies for actual contract outcomes. We …nd th...

A simple graphical model for correlated defaults is proposed, with explicit formulas for the loss distribution. Algebraic geometry techniques are employed to show that this model is well posed for default dependence: it represents any given marginal distribution for single firms and pairwise correlation matrix. These techniques also provide a calibration algorithm based on maximum likelihood es...

A manufacturer writes supply contracts with N buyers. Then, the buyers invest in product development and marketing, and the manufacturer builds capacity. Finally, demand is realized, and the ...rms renegotiate the supply contracts to achieve an e¢cient allocation of capacity among the buyers. The court remedy for breach of contract (speci...c performance versus expectation damages) a¤ects how t...

s in this article, the evaluation of damages in international disputes with special reference to the oil and gas cases has been studied. it should be noticed as a fact that the breach of contracts or the breach of some sorts of obligations does not necessarily amount to payment of damages. in many cases, the evaluation of damages depends on the methods of evaluation uses. therefore, the most im...