Balancing Grower Protection Against Agency Concerns: An Economic Analysis of Contract Termination Damages

Using a dynamic principal-agent model, we analyze termination damages that protect growers from contract termination or non-renewal. We show that government imposed breach damages can be distortionary and may not necessarily lead to increased grower welfare.


Issue Date:
2004
Publication Type:
Conference Paper/ Presentation
Record Identifier:
http://ageconsearch.umn.edu/record/20392
PURL Identifier:
http://purl.umn.edu/20392
Total Pages:
22
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2018-01-22

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