Incentive approaches to overcome moral hazard in port concession agreements

@inproceedings{Wang2014IncentiveAT,
  title={Incentive approaches to overcome moral hazard in port concession agreements},
  author={Grace W.Y. Wang and Athanasios A. Pallis},
  year={2014}
}
This paper provides a game theory foundation for port concession agreements, using the incentive mechanism design. This study identifies the post contractual moral hazard problem, and provides a model involving performance-based concession fees to align successfully the Port Authorities’ interests with those of the terminal operators. To match theory and practice, factual information of recent projects in Europe and the US is reviewed. Evidently, to avoid transaction failures in a Greenfield… CONTINUE READING