allocates risk so that delays, disagreements, over-expenditures, and under-capitalizations can be managed (or avoided altogether … modern hydraulic fracturing has changed risk allocation in joint ventures, and then considers a couple of the central debates …

same time, the very concept of the project risk has been generalized: instead of the conventional risk of unprofitability …, a new, more general concept of the risk of unacceptably low project profitability has been introduced. Two levels of the … risk of the project as a whole for all its parameters at once and the risks for each of its parameters separately. At the …

This paper studies a partial-contracting model where an agent may provide effort to increase a project's scope before … exogenous risk and delegation. That is, we show that only if exogenous risk is sufficiently large, the risk-neutral principal … may prefer to delegate authority over decisions to the risk-averse agent. Intuitively, for incentive reasons, the …