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Indexed by:会议论文

Date of Publication:2008-10-12

Included Journals:EI、CPCI-S、Scopus

Page Number:7745-7749

Key Words:moral hazard; limited liability; payoff externality; deposit; contract efficiency

Abstract:This paper examines the possibility of contractual breach in BOT projects. The main advantage of BOT Scheme is that payoff externality can be internalized through bundling construction and management operations. However, the efficiency of BOT contract is flawed if private company with limited liability intentionally cancels the concession contract. The paper also investigates the deposit policy to deter the strategic breach of contract.