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.
Title
Balancing Grower Protection Against Agency Concerns: An Economic Analysis of Contract Termination Damages
Issue Date
2004
Publication Type
Conference Paper/ Presentation
Record Identifier
https://ageconsearch.umn.edu/record/20392
PURL Identifier
http://purl.umn.edu/20392
Total Pages
22
Series Statement
Selected Paper
