Abstrakt
rior research finds that people value their promises and are, therefore, less likely to act opportunistically when an agreement has been formed. In a novel experiment, I challange this idea and investigate the effects of different legal mechanisms on the willingness to break an agreement.
The results indicate that compensation and fine mechanisms commodify opportunistic behavior to some extent. When confronting a compensation or fine, participants tend to act more opportunistically.
This effect is not present when the victim recovers the inflicted loss from breach. The results support the idea and implications of efficient breach of contract.