Social Sciences
4 years ago

Payments in energy partnerships impact fairness and investment incentives significantly.

MPRA Paper
Public-private partnerships, incomplete contracts, and distributional fairness – when payments matter
Özgür Yildiz

Paper Summary

The article explores how social relationships in the German energy sector affect investment decisions in decentralized energy production. It shows that when contractors value fairness, their investment incentives differ from traditional economic models. Additionally, payments, not just property rights, can influence behavior by triggering feelings of envy or guilt.

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