The Renegotiation of Defense Procurement Contracts: The Role of Informal Aspects

By Jean-Michel Oudot

In addition to the occurrence of risks, substantial changes in the initial terms of the contract are expected to rely on bilateral, multilateral, written, or unwritten arrangements. The analysis of French databases shows that informal considerations are the most relevant aspect in explaining effective enforcement conditions of defense procurement contracts.
JEL Codes: D86, H57, K23, L14, L64


  • contract
  • renegotiation
  • defense
  • relational
  • hybrid
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