Rosenkranz, S.; Weitzel, G.U. - School of Economics, Universiteit Utrecht - 2011
We analyze the effect of liquidated damage rules in exclusive contracts that are negotiated in a sequential bargaining … liquidated damage rules. Furthermore, we show that the effect of the payment of damages on the efficiency of the consummated … deals depends on the possibility to sign more than one contract. Only if this is not possible, damage rules may prevent the …