Adam Rigoni, ‘The Moral Impermissibility of Efficient Breach’

Recently, some economic theorists have argued that efficient breach is in fact morally justified. This paper demonstrates that these arguments employ ‘chameleons’, to use a term from Paul Pfleiderer. Chameleons are theoretically interesting but patently unrealistic models which are used to draw real-world conclusions. The arguments fail once the unrealistic assumptions are removed, vindicating the common-sense notion that intentionally breaching a contract is (prima facie) wrong.

Rigoni, Adam, The Moral Impermissibility of Efficient Breach (June 24, 2016).

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