会议论文

Shi, Lei

Huang, Winlin,Dai, Dashuang

2008-10-12

EI、CPCI-S、Scopus

A

7745-7749

moral hazard; limited liability; payoff externality; deposit; contract efficiency

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.