We examine the implications of a firm outsourcing both (i) security device management which attempts to prevent security breaches and (ii) security monitoring which attempts to detect security breaches to managed security service providers (MSSPs). In the context of security outsourcing, the firm not only faces the traditional moral hazard problem as it cannot observe an MSSP’s prevention or de...

In this paper, in order to model breach of contract risk, we design and value a bundled option that is composed of contract abandonment and price renegotiation. We show numerically that the bundled option is more valuable for the contract than either of the options, ie, contract abandonment and price renegotiation, in isolation. This value increases monotonically as the spot price becomes more ...

nowadays, in most legal systems, breach of contract leads inter alia to right of termination for obligee. but this has not always been the case. this study shows how european legal systems have moved from denial of right of termination for non-performance into recognition of a general rule concerning unilateral termination of breached contract. iranian legislature, inclined with the evolution o...